With last week's price action, nothing has changed in my longer term analysis of this pair.
In this UPDATE, I am now adding a POTENTIAL pattern that also formed due to last week's price action. This bat is inside the meaning that it's range and take profit targets are all contained within the range of the . It can be expected that the bat will both complete and reach it's profit targets and would not invalidate the . In fact, I would expect that prices may complete the bat, retrace to reach at least target 1 of the and then resume downward momentum to complete the or just stop short of it at the .382 level of the larger .
Year-to-date Profits: +5,794 pips.
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If you are using the BAMM method to enter PRE-PATTERN trades (remember, these patterns DO NOT EXIST until the D point is reached!) then you must be conscious of the R:R for the BAMM trade. My trading plan calls for me to only take trades (regardless of entry method and type of trade) that have a 2:1 R:R or better. So many times, BAMM trades do not fit my trading plan R:R.
Now having said that, if I am trading on a larger TF, say the 4HR TF, than the R:R and potential pip profit may be worth the risk of the trade. Then I will also look at the current price action and try to find other supporting reasons why I should take the trade and not just because it's a valid BAMM entry. Make sense?