Lolly Tripathy
Sergeant Major
- Messages
- 515
Regarding the Euro, for me it still does not seem to be a trend reversal because of the overlapping price action we see for weeks now.
It has been nearly two months since I first raised the possibility of the triangle scenario. Recall that triangles may form by themselves only in the wave 4, wave B, or wave X positions, they always precede the final wave of a sequence. And the idea fits in well with the phase where the greater advance seems to be:
View attachment 37239
We can see a series of three-wave structures that might form waves (A), (B), (C), (D) and (E) of the triangle. This most recent down move could be wave (C), and if it is, we should wait a few sessions to see the last two legs of the triangle forming wave (D) and (E).
So under this scenario we have to wait for the last two waves to unfold and then go long and set our stop below the low of wave (C) because we know that wave (E) cannot go beyond the end of wave (C).
The idea for this trade plan would be to anticipate a thrust out of the triangle towards 1.26x offering a good risk/reward trading opportunity. A less aggressive strategy would be to go long after a move beyond the (B)-(D) trendline, indicating the end of the triangle and the resumption of the uptrend.
Keep an eye on potential reversal in the red target zone. As soon as prices break the upper border of the grey channe we can use the bottom as working support for higher in wave (D).
Thank you so much dear