as shown in the earlier yesterday's chart , i was looking to a channel 5 wave down with resistance at the channel borders to add short and ride the 5th wave down , we did add short at 82 which was pretty much the top and we r now targeting the area between the red line shown on the chart which is the Yearly low , and the dark red line which is the phsycological 80 level.
i ll be looking to cover the short as planned on the test of the yearly low althought i m confident of more lows to come but after the clear 5 waves down from the top , i m anticipating a rebound of this area back to the 8170-8250 area before we start another wave down .
as shown in the chart there is multi indicators forming now Divergance to signal of the coming bounce , RSI OSC MACD and pretty much every indicator will show this Divergance after the test of the resistance area.
in such cases , after 5 waves down its more possible for the ret. to end at the 4th wave level before the start of the next wave down.
cause we r in with only half position and we dont have the flexability of cutting a part of the position and leave the other part to work so i m takin the position off and then i ll be looking to reshort when i see eveidence if the coming correction endup.
but i m expecting it to be a very short bounce up as the downward momentum is growing on the daily chart so make sure u follow me on twitter for any sudden position adjustments
Hey Jesus. Just wondering if you follow the stocks much when trading aud? Does the current asx rally, particularly the all ords influence the current audusd rally much?
ReplyDeletei offcourse follow the Stocks king , the current rally is very expected after finishing a 400-500 move down in 5 waves from the top , and i shown in the chart the possiblity for that correction ,, this correction is forming a zigzag wave correction which might take the price to 8250-83 before another downleg ,,,,
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