1. Wait for market to recover to 1.7116 - 23
2. Buy September Put Options with a strike of 1.70 (personal preference)
1. If market proceeds to make a new high above the 1.7190 High on the 15th of July.... Close position.
Why am I using options?:
1. Risk is fixed.
2. Greater leverage because we are expecting a SHARP selloff from this set up, not simply a drift.
It looks like the 5 waves down isn't completed, and what we are seeing here may be forming a triangle for a wave 4 (bear pennant) with a wave 5 to come.
Where the blue labels show waves iii and iv... the blue wave iv should end where I have put wave iv (red).... with blue wave v where I have put v (red) to complete the RED wave iii.
Hope that makes sense :S