Recently we made a double top at the 0.705 and went to the bottom end of the chanel. MACD is diverging on the 4H and 1D indicating price weakness. If we fail to make a new higher high an end of the chanel is possible and I will be looking to short. For the moment I will wait for a confirmation on the smaller timeframe before enter. 2816 trade may be a good approach to attack this one. Trade with care
Trade active
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Entry at 0.68800 SL above the double top TP1- 0.67 TP2 -trail SL at break even after TP1 is reached
Trade with care.
Comment
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I decided to add to my previous position. I think this one has a long way to go to the downside.
Comment
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For those who missed on the impulse to the downside don't worry. It looks like there will be a correction before continuing down. There are a few scenarios on how the correction may develop: 1-Three wave correction giving us a bearish AB=CD. Looking left there is some structure as well. If CD leg extends, the 1.27 and the 1.618 fib extention are in confluence with the 50 and .618 retracement from the initial impulse. 2- Retracement back to the .618 will give us a 2816 trade. 3- Five wave corrective triangle structure. As of now it is too early to tell exactly which one, but it look like either a symetrical one (Top declining, bottom rising), or ascending (top flat, bottom rising) 4- Lets not forget the harmonic traders. Potential Bat pattern
For now I'll sit back and watch how price develops. Trade with care.
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What we have for now is ABC corrective structure followed by a breakout and a test of the break out. I expect another impulse to the down side. After that I will take partitial profits at the 0.67500 level.
Trade closed: target reached
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Comments
marto_el
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Looks like we have scenario 3- Ascending five wave corrective structure.