Potential 5th wave (Ps I will not be taking this trade)
Updated
I figured I would post this trade just in case it could potentially help someone else or reinforce an idea they may already have, reason I'm not taking this trade is because I have hit my monthly quota and also passed another FTMO challenge, in which the verification doesn't start until Sunday 6th, so I get a week off to study the markets :)
Also apologise for the messy charts as they were never meant to be shared and I understand my mess :)
That being said what you're are looking at is a parallel Chanel, after reaching the top and taking an initial drop, it bounced off the 200 EMA to make a lower high, then went on to make another lower high before from a double top then another lower high and another double top, after the the first double top I took a short, but ended up closing in profit as it began to rise again, I then got back in after the 3rd lower high and rode it all the way down to the bottom of the parallel channel, placing my stop loss 20 pips above the previous high of the last double top.
I then figured it was going to either bounce back up from the bottom of the parallel channel or react at the Blue line that I market as potential end of wave 3, as you can see it touched the blue line perfectly before bouncing around that level for 4 hours, although I had already reached my quota for the month, I didn't want to take any more trades but also thought the opportunity may be to good to miss, so opted to take out another small ftmo account and take a trade for a potential wave 4 move to the upside, as you can see it paid off, I placed my sl where the red line was and took a trade up towards the 0.382 fib as this is often where wave 4 retraces back to, and as you can see it went back up perfectly to the fib, and I Passed that FTMO Challenge within one day.
now using the wave theory I have placed a short position idea where wave 5 should end, and thus far it is playing out to plan, as wave 5 is often the length of wave 1,
Please note I am no trading expert just sharing an idea, but if I am correct, you can take a trade from here and place your sl at 155.515 and TP at 152.361
Good Luck All!.
Also apologise for the messy charts as they were never meant to be shared and I understand my mess :)
That being said what you're are looking at is a parallel Chanel, after reaching the top and taking an initial drop, it bounced off the 200 EMA to make a lower high, then went on to make another lower high before from a double top then another lower high and another double top, after the the first double top I took a short, but ended up closing in profit as it began to rise again, I then got back in after the 3rd lower high and rode it all the way down to the bottom of the parallel channel, placing my stop loss 20 pips above the previous high of the last double top.
I then figured it was going to either bounce back up from the bottom of the parallel channel or react at the Blue line that I market as potential end of wave 3, as you can see it touched the blue line perfectly before bouncing around that level for 4 hours, although I had already reached my quota for the month, I didn't want to take any more trades but also thought the opportunity may be to good to miss, so opted to take out another small ftmo account and take a trade for a potential wave 4 move to the upside, as you can see it paid off, I placed my sl where the red line was and took a trade up towards the 0.382 fib as this is often where wave 4 retraces back to, and as you can see it went back up perfectly to the fib, and I Passed that FTMO Challenge within one day.
now using the wave theory I have placed a short position idea where wave 5 should end, and thus far it is playing out to plan, as wave 5 is often the length of wave 1,
Please note I am no trading expert just sharing an idea, but if I am correct, you can take a trade from here and place your sl at 155.515 and TP at 152.361
Good Luck All!.
Note
Not sure if anyone took this trade or not, but it's looking good and only a few pips away from the target :)
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