Revised EURCAD pattern & trade ideaTo say trading Forex / currencies can be frustrating, is an understatement. To be a good trader, we must shake it off and get busy searching for high probability trades worthy of risking our risk capital.
So here is another Forex Trading Snack.
Earlier ( what I mean is a few days ago ) I pointed out a nice EW ( Elliott Wave ) 5 wave pattern developing in my opinion. But as we all know the market is never wrong! And so as traders we much change with the ebb and flow of price action.
To be good at trading and or to be always looking to improve our consistency in trade results, we need to maintain an open mind as well be open to changing our opinions or views.
Enough about that! I still see EURCAD in a sort of EW 5 wave movement or pattern. For the past days sense I posted my first idea to current time of this post...
( See my pasted idea of EURCAD linked to this post.)
We have seen this pair in a consolation from it near term highs just after the manufacturing ISM reported news. I fully expected the pair to make a 3 wave drop which usually happens following an EW 5 wave pattern. Instead we got this consolation. This leads me to believe we could still set a 5Th wave high and that this pattern isn’t completed just yet. I can also see a triangle forming because we have set lower highs and higher lows throughout this consolation period of time. ( triangle marked in pink lines )
Trade plan;
I plan to trade the breakout higher or lower depending on what the market decides. If we break higher we could retest horizontal resistance zone around 1.4730-50 and that would be some 60-100 pips away. If we should get that move and then a rejection candle on a daily, then we could consider a 5Th wave top to be in place.
However if we break lower from the current triangle in pink we could run again some 60-100 pips or even more, your guess is as good as mine.
Truth be told though, a pattern build up like the consolation pattern in pink lines will break one way or the other. I prefer it to see it break higher first. Because should that happen the downward move after the 5Th wave will be a bigger move and should be in 3 waves, giving plenty of opportunities to go short with size of position. It’s all about seeing potential future moves and positioning for that move before it really takes off.
If you trade these ideas the risk is all yours.
Your comments or ideas are most welcome.
In trading you either make dust or you will eat dust.
All the best in your trades.
