***NOTE*** In the main chart above, I removed the blue bat pattern you see in the above chart for clarity. It is still very much in play and part of the trading plan
In this post, I said I was waiting for wave (B) to finish. Well, guess what? Wave (B) finished and now this pair is headed up and currently, it most likely has started on it's wave 3 up! I have 2 trades on this pair running:
1. Bought @0.70011 (see Related Ideas: "TRADE: AUDUSD: BUY@.70011 Waiting wave (B) Finish. AB=CD Done") 2. Bought @0.69497 (see Related Ideas: "TRADE: AUDUSD: BUY@0.69497 G-Zone Reversal + C Point of bat")
Now that the uptrend in this pair is well underway, what I wanted to show was the steps along the way where there may be retracements and therefore opportunities to trade. As you know, no trend goes up without stops along the way where prices retrace and then resume. Patterns do a good job of illustrating those points. Keep in mind though, just because a pattern is there and is valid DOES NOT mean that prices will 100% respect that pattern. Especially in the case of a strong trend. Prices can very well ignore any pattern and shoot right past it. So the patterns I am showing here are just areas to watch.
There are 4 POTENTIAL patterns that I am showing here that may have some influence on prices: 1. Butterfly located right near the .382 retracement of the wave (B) 2. Crab #1 located near the .618 retracement of wave (B) 3. Crab #2 located near the .786 retracement of the wave (B) 4. Crab #3 located near the beginning of the wave (B) and the end of the wave (A). This would also be a MAJOR SR Structure zone.
It's not a coincidence that each of the patterns are located near to some sort of significant fib level and/or structure. That is what patterns do. They illuminate some significant levels otherwise may not be so apparent.
In any case, just be aware of these patterns and any retrace that results. When/if prices do retrace from each of these patterns, each of the dips will be good buying opportunities that I will be looking for and adding to my LONG positions I have in this pair.
*DISCLAIMER: Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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Good morning,
please, could you explain why to wait the (B) wave.? The minimum at 2015/09/24 09:00 0,69376 could be the (B) wave to me, perfectly. The double bottom now looks to me a wave 4 for a C wace in an ABC retractement which I think it's not correct.
Thank you and GL.
EverythingForex
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Please show a chart. I don't see how you can have the first bottom @ .069376 be the end of the (B) wave. If you do that, then the rise from that bottom must be the wave 1 of the wave 4 C wave, correct? If that is the case, the the retracement back down from there must be the wave 2 of the wave 4 C wave, right? Well, you CAN'T have that because the second bottom low is at .069368 which is LOWER than the first bottom low. So if you are saying that is wave 2 of the wave 4 C wave correction, then your wave count will be wrong as no wave 2 can be LOWER than the wave 1 before it.
Amanita
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Hi, I'm sorry but I'm not confident with the tool copy paste. I hope the chart can be seen.
I understand you reasoning once the slightly lower second bottom has been built but when at the time I draw my wrong (B) wave, the slightly lower botoom was not neccesary at least to me. Well, it is difficult to explain. Thank you again.