On the chart, you can see a fairly clear pattern that had formed earlier, Prices had already broken the neckline which I have also labeled as a minor sr structure. On a retest of that neckline, that would be a good place to attempt a SHORT.
There 2 POTENTIAL patterns that I am showing here that are relevant to this trade. Both are bat patterns with one completing sooner than the other. The first bat could be marking the end of a possible wave 3 down in this current down trend. The larger bat ends down near the G-Zone retrace of the previous uptrend.
BEWARE THE TRIANGLE!
We are seeing nice trending moves here back and forth. This makes for very good and predictable trading! And it is also characteristic of.....TRIANGLES! So far, there is not any firm evidence of a triangle right now but I'm just pointing it out so you can be aware of it. If/when prices do reach the completion of the larger bat and turns from that point, then we could very well be looking at a 4th wave. Upon it's completion, a powerful 5th wave up should ensue. But that's for much later to deal with.
MY TRADE PLAN
I will be waiting for some kind of retrace before I even consider taking another SHORT in this pair since I already have SHORTS in this pair.
For more trades, tips and analysis, please join my facebook group at: www. facebook .com/efsselect.
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!
If you like my posts and find them helpful, please take a second to hit that LIKE button and follow me so I can know my post was helpful to you. As always, any CONSTRUCTIVE comments are welcome whether AGREE or DISAGREE.
2018 Guide TO Forex Markets Coming Soon! Want it? Sign up to mailing list: http://bit.ly/2iNieEY