ABCDE Pattern In Expanding Wedge!
Updated
A close of the current daily candle would form a bearish engulfing pattern which could indicate that the bears are taking over.
Price has retraced back to .786 fib level from the move down that started back in September.
The .786 fib level has provided prior resistance as indicated by purple curves and seems to be holding.
A break of the .786 fib level out of the expanding wedge would invalidate the trade and would look for a larger correction up.
An aggressive trade could be taken now with a stop loss being placed above the previous high, above the .786 fib level.
A less aggressive trade would wait for confirmation after US news tomorrow, looking for an entry at a lower timeframe.
Currently looking at a 10:1 risk/reward ratio to completion of DE leg down.
Good luck!
Price has retraced back to .786 fib level from the move down that started back in September.
The .786 fib level has provided prior resistance as indicated by purple curves and seems to be holding.
A break of the .786 fib level out of the expanding wedge would invalidate the trade and would look for a larger correction up.
An aggressive trade could be taken now with a stop loss being placed above the previous high, above the .786 fib level.
A less aggressive trade would wait for confirmation after US news tomorrow, looking for an entry at a lower timeframe.
Currently looking at a 10:1 risk/reward ratio to completion of DE leg down.
Good luck!
Note
365+ Pips if this trade was taken. 110 pips to final target!
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