However, if you are risk averse and more conservative, you might wait until prices do actually break that wave b TL.
The highs on this chart I have labeled as the end of the wave III . That means that this correction is a wave IV. I have this wave IV as unfolding in an ABC pattern with the wave a already complete and prices now working on the ending of wave b. This wave b is retesting the highs and has already reached the . of the wave III . After the wave b is done, we should see a nice wave c down probably right to some significant TL's.
There is a POTENTIAL Bat that is waiting on its' C point to be established. Once the C point is establilshed, we should see prices decline along the CD leg of this bat. There is a larger POTENTIAL that has NOT yet been completed although prices came close. I believe that it will get filled but later after this coming decline is done and a wave V up commences.
There is also a pattern that as of this post, would complete at 0.96509. Bot the and the bat both finish at or near those significant TL's. This in itself lends even more credence that these patterns are correct and are significant.
WHAT TO EXPECT
I'm expecting that prices are very near the end of wave b having already hit the .886 retrace. Watch for prices to decline towards that minor TL (blue dotted). Breaking that minor TL is critical as that will open the door for prices to drop towards the MAJOR TL's.
MY TRADE PLAN
I'm in SHORT for the LONG TERM play down into those TL's and the completion of those patterns. My stops are obviously going above the highs. So unless prices break through those highs, then I will remain as per this trade analysis.
Year-to-date Profits: +5,794 pips.
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