I apologize in advance to all who want a nice clean chart. For me to explain how I get to where I am I need props.
So here we go. We are in a w-x-y correction that is showing no divergence at all so we can expect another down move complete the -x-z waves once we have an up move and crossover on the AO.
We have only retraced a little past the .38 fib and I would prefer to see a deeper retracement to the .5 and beyond.
There are two areas of resistance where price may reverse. I prefer the one on a fib close to the trend line. So it depends on the steepness.
Of course the AO is not 100% so price could hit the 1 hour purple trend line and break through. If it does look for a correction and an up move to at least the 1.585 area.
Remember always look left to see, there is nothing to the right yet.
Educate yourself, create a trade plan, validate your ideas with other trader’s ideas. Own your trades good or bad.
Happy pip hunting
So here we go. We are in a w-x-y correction that is showing no divergence at all so we can expect another down move complete the -x-z waves once we have an up move and crossover on the AO.
We have only retraced a little past the .38 fib and I would prefer to see a deeper retracement to the .5 and beyond.
There are two areas of resistance where price may reverse. I prefer the one on a fib close to the trend line. So it depends on the steepness.
Of course the AO is not 100% so price could hit the 1 hour purple trend line and break through. If it does look for a correction and an up move to at least the 1.585 area.
Remember always look left to see, there is nothing to the right yet.
Educate yourself, create a trade plan, validate your ideas with other trader’s ideas. Own your trades good or bad.
Happy pip hunting
Comment:
Price has been rejected by a LTF resistance area. As we did not have a crossover of the AO this is still part of the "Y" wave and can go lower than the last low.
Comment:
Be wary of this trade. We had a strong move up to the upper resistance area right on the TL as I suggested above. The move up was very impulsive but may be news related. That being said the trade made a 6:1 return. Move stop loss to BE take some profit and see if this down move which look corrective is the "B" wave of a larger up move.
Trade closed manually:
Price hit the second resistance zone again right at the TL. could have had another 3:1 return if you dared take that one. One thing to note, the candle identified in the last update was exactly where price finally turned around. Keep them in mind as they can be a good place to take a trade.
Comment:
Here is what I believe early next week will bring. Indicators show a there should be a small correction back to the small area of resistance at the 38 or the 61. Then a move down to the larger 4 hr support area. We will be looking for a bullish signal or a strong break of the 1 hr TL. That should continue up to the 4 hr TL where we are hopping for a strong break of that (blue) line. Breaking that line should be a very good long possibly to the 1.60 area.
4x has shown some volatility lately and remember the lower the time frame the more news events can dramatically change short term movements.
Good luck
4x has shown some volatility lately and remember the lower the time frame the more news events can dramatically change short term movements.
Good luck
Comment:
HTF idea