Based on the current structure, I see a horizontal triangle. Last week price hit the top of this structure, that could potentially confirm the start of the next (5th) wave down.
Next week price can do one of two things:
1. Continue to move down slowly then into an impulsive move down.
2. Continue into some ...
The DAX is going through a correction at the moment after completing a 5 wave up structure (not shown on the chart). My long term bias for this pair is short. However, it looks like the current corrective wave could be coming to an end before it starts another ABC structure.
How to trade:
- Watch for a break and ...
Plan to trade:
- Monitor current correction on a lower TF. Potentially enter long on a pullback with an initial TP of trend line shown.
- If price breaks trend line and closes above it, my plan would be hold the position for the longer term move.
- If price doesn't close above the trend line, I would close my ...
Reasons for trade:
- The current wave (correction) looks to be coming to an end. Divergence appearing on the MACD between the first impulse down and the current impulse down.
- Based on corrective structure having a minimum 3 waves, I expect one more move up to complete bigger picture correction.
- TP would be ...
AUDNZD had a rather quick impulse down today. It looks like price is currently consolidating this move. There could be an opportunity to enter short again.
Watch for divergence on a lower timeframe around the 38.2/50 fib level. Or you could enter on the break of the consolidated candles.
TP - 27 fib, which ...
Reasons for sell:
- Divergence forming on the 4H
- Potential completion of wave 3 in this part of the correction
TP1 - Closest trend line (orange line).
TP2 - If orange line is broken and price consolidates within that area, I would look for a further short to the larger timeframe trend line (blue line).