This should be just a relatively short move down as a retracemrent of the recent leg up before prices make a larger move up to complete what is probably a wave iv corrective move before we see a MUCH larger wave v move down. This wave iv is starting to look as if it will unfold in an ABC (5-3-5) pattern. Still too soon to be sure though.
Here's the overview of what I am expecting to see happen:
A word on that POTENTIAL you see on my chart and one that I had posted about a few days ago. It was never filled as prices fell short of filling it by a few pips before dropping. However, as you should know, patterns are on the chart only because we put them there. Not because the market cares that there's present! Therefore, prices do not move because of a pattern being present. It moves because it has reached a certain area that traders felt was worth selling at. It was very close to the but that price where it reversed and dropped from was indicated by the . So in that respect, that has done its job and I do not consider it to be valid anymore should prices follow the route I think it will and move back up later.
MY TRADE PLAN
My TP will be on the completion of this perfect . Stops are going above the (b) point of my wave count since if prices move above that point, then the abc count I am expecting for wave (B) is not correct.
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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