Potential ABCD BAMM Currently Trading At The 800 Day SMA
We have a big potential ABCD BAMM in the works here that could send the USD up to the 2.618 if we bounce from here and we are currently setting up for a Reciprocal CD leg.
We are right on top of the 800 day Simple Moving Average and the CPI data releases tomorrow so we will probably know rather or not this was a good trade really soon after the release of the data.
We are right on top of the 800 day Simple Moving Average and the CPI data releases tomorrow so we will probably know rather or not this was a good trade really soon after the release of the data.
I will now be lowering the bullish target down to the 1.618 rather than the 2.618 as it can be clearly seen that the BC leg continued down quite a bit more but bounced perfectly on the 61.8% retrace and avoided hitting the stop loss. The deeper retrace on BC calls for a shallower Reciprocal Extension on the CD leg which in that case the Reciprocal of 0.618 is the 1.618 extension.