Expecting the price to bounce off the trend line and continue downwards.
Not sure how far down exactly, but it can go down pretty far before coming up again - probably breaking out of the downtrend to go up. This is where I am willing to buy the breakout.
Based on the uptrend that was broken and there was a fib retracement to 61.8 I am shorting the marktet.
Using the demand level and a fib extention, I believe it could go down to at least 1.272, closing 1/2 of my trade there and letting the rest ride to at least 1.618
Coming down from a supply level, the price broke the uptrend line before making a reversal continuing the new downtrend.
I will sell when I get a bearish confirmation in the form of a candlestick pattern or something similar.
Target will be at the 1.618 and the SL above the supply level.
Assuming that there was an impulse wave completion at "5" and a corrective wave "A" has formed...
The correction is expected to go down.
I am a novice to FX trading, so please be gentle but constructive when you comment. Thanx!
I am a novice to the FX trading world and am here to learn. So please be nice and constructive when you comment.
The assumption here being that we are looking at an impulse wave to the upside.
Looking at a (nearly) completed 4th wave and a 5th wave about to form.
(Wave (4) being 0.382 x wave (3), since wave (2) almost precisely was 0.618 x wave...