EverythingForex

UPDATE #1: TRADE: GBPUSD: SELL@1.54279 Wave 3 of 3 of 3 Coming?

FX:GBPUSD   British Pound/U.S. Dollar
1389 7 32
Updating a previous post on this pair. here is the chart I posted 3 days ago:
TRADE: GBPUSD: <span data-href="idea-custom-link" data-href-idea-custom-link="mailto:SELL@1.54279" rel="nofollow noopener noreferrer" target="_blank">SELL@1.54279</span> Wave 3 of 3 of 3 Coming?

In that post, I suggested that we would be seeing a sharp drop coming in what would probably a wave 3 of 3 of 3 type drop. Well, here it is! But from my perspective, there is still more to drop. If this is a wave 3 move, then of course, there is going to be a wave 5 yet to come to complete this impulse wave. Yes, that also means that the next move must be a wave 4-type move. Question now becomes when?

To answer that question, there is now a completed bat pattern . Can this be what signals the end of this wave iii             of ( iii             )? It is possible but it's not a bat I would take as this would be going counter-trend against a wave iii             drop. The proverbial "catching a falling knife".

MY TRADE PLAN
Full disclosure: I actually had closed my SHORT position on this trade earlier and broke one of my own trading plan by closing a trade prematurely and not letting my stops take me out. But that doesn't mean this analysis is not correct. Anyway, I won't be taking a LONG trade off this bat because I believe that there is more downside to come. Instead, I'll be looking for another SHORTING opportunity although it may not happen till next week after the NFP. Or the NFP could trigger another move down.Can't tell for now.

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*DISCLAIMER:
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!

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Awesome call! :D
+1 Reply
EverythingForex PRO Yummyness
a year ago
thanks. I called it but I doubted myself and closed it early so I didn't reap the benefits of my hard work! LOL! I made a rookie mistake! But I realized I was wrong shortly after I closed it but didn't want to compound one rookie mistake with another by chasing the trade. Oh well, win many. Lose some. :P but the call was correct as I posted it.
Reply
shobz99
a year ago
perfect
Reply
EagleTraderFX
a year ago
I am decide to going short this pair last 3 days with my analysis and get more confident when see ur post. Now still holding. Thanks.
Reply
chachacallis
a year ago
Hi everythingfx
Love the work that you do, i am just learning trading myself and i am interested in finding out how do you estimate the ending points in the various waves. in the example above wave 3 is it just using fib ratio?
thanks
Reply
EverythingForex PRO chachacallis
a year ago
Thanks for the question. Projecting the end of waves is not hard to do. But CATCHING the end of a wave is HARD to do! I use various techniques to try to project the end of the wave. One of them is structure. With the above wave iii end projection, I used some minor structure to determine the possible ending but it didn't hold as I thought it might not. This is one of the reasons I didn't take that bat as so many others recommended to do or did. As you can see, it quickly failed. Why did it fail? Traders will come up with different reasons and many are valid reasons so I will add my own. Simply put as I stated in my analysis above, that was or still is a wave 3 down! As we all know, wave 3's are usually very powerful! So taking that bat would've been a counter trend trade against a powerful wave! This is LITERALLY called "catching a falling knife"! So anyone who read this post and listened, avoided the loss.

Anyway, back to you question, I saw that this wave 3 was not complete so I knew it was to fall more. So I knew that I needed to extend the end of the wave. I originally projected all the way down to the origination of the bat pattern (the X point) but I soon realized that wasn't gonna be enough. So my further projections use fib level retracement and projections to try to find a good level to trade from.

Hope that helps!

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+1 Reply
chachacallis EverythingForex
a year ago
Cheers Everythingfx, thanks for the explanation
Reply
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