To answer that question, I have to go to my wave count and see what it is sayihng. But first, let me explain about what you are seeing in the chart above. Prices are declining explosively right now. As you can see, I marked out a potential that may be filled soon. Further out, there is a waiting beyond the bat. Both these patterns are and the in particular may give us a clue as to how far prices will drop . Why? Read on....
OVERVIEW - Weekly Chart
This is showing what i have as my wave count for the large impulse wave up. As you can see by my wave count, I do not believe wave 5 of this impulse wave up is done.
DAILY CHART - Close Up Of The Current Wave V
You'll notice on here that I have drawn the POTENTIAL that may complete if prices were to move further up after this retracement. If it does, that movement may complete the entire larger 5 wave impulse wave advance up.
4Hr CHART - Showing The Wave iii Trend Line
CONCLUSION AND MY TRADE PLAN
As shown by my wave counts, I believe that this pair has just started it's wave iv of the 5 wave ending wave 5. Notice that the (blue) would end near the .382 retrace of the wave ii advance. If prices were to reverse back up from here, I suspect we will have a very quick and explosive wave v up as 38.2% retracements usually lead to a strong move. I regret to say that I missed the top here and did not get in yet. so I am also lookng for a chance to get in on this wave iv down. As of right now, the has not been filled just yet. My plan is to wait until it does get filled and watch the PA. If prices do start retracing back up after the gets filled, this will give me a chance to get in and go SHORT for a larger move down to the . For now, I'm sidelined. If I were to miss this entire wave iv move, I would not be too unhappy about it. I'll be looking to catch the next and i think final wave up.
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. 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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