Looking at the chart of the euro futures contracts we may spot a possible Elliott Wave Pattern labeled as 1 to 5. It is a potential impulse wave that may soon come to an end. The theoretical resistance for wave 5 is set by 161,8 Fibonacci expansion of wave 1 placed at the end of wave 4.
If this area is defended the market may retrace back as potential wave A in a...
This pattern first started once a week in November and has slowly developed into every other day, retail longs on the extended Euro Dollar have been pumping liquidity to short sellers. The following day usually has a nice pump and the lower lows and higher highs as the "uptrend" continues. Now that stimulus has passed I believe that more big sellers will begin to...
Metrics:
Max Profit: 337.50
Max Loss: 287.50
Break Even: 1.1977
Notes: A bearish assumption directional shot at resistance. Alternatively, FXE January 15th 111/113 long put vertical, 1.05 max profit, .95 debit/max loss, break even 112.05 vs. 112.13 spot (although it's trading above that pre-market).
Above 1.1826 🡪 1.1897 (confident that 1.1897 is a short; 13 year resistance)
Sustained above 1.1897 is super bullish
Below 1.1826 🡪 1.1787 🡪 1.1610
Short the 8hr H&S.
The circle is the first evidence of a downtrend. After that, there was a second move, breaking down the green trend line, and the rising wedge, which is a typical bearish pattern, has emerged. In the short term, I try to approach it from the point of view of SHORT.
in this market we have broken the VWAP indicator with force combined with a significant volume plus the market has a spring effect on the VWAP, means a very important buying opportunity towards the TP
the market will experience an upward trend if we break the green resistance line, so we have a high probability of gain in the market combined with the breakout of the vwap indicator
signal buy
