Over the weekend I am looking to get a lot of charting done. First I am looking at a long 5-O position on the euro/aussie on the daily timeframe. Price has spiked against the weekly trend line, which I expect it will do so again. I used the XABCD tool to map the 5-O; where our B point would be on the pattern (C point on the tool) is a solid 1.618 extension of the previous wave. Due to the precise nature of the pattern, I expect the reversal to be just as accurate (our C point being almost perfectly at the 1.618 or 2.24 extension levels). Once price rallies and reverses from the C point, we will wait for a long entry within the 50% reversal zone!
By time price reaches our D point as planned, I expect price volatility to have calmed after the french election- it should be stable enough to take an entry (especially being on the daily timeframe). You can clearly see that there is a history of support/resistance between 1.45 and 1.49.
Ps. We will for sure be looking for a reciprocal AB=CD within the 5-O as it develops.
5-o Ratios
B:1.13-1.618
C:1.618-2.24
D:50%
By time price reaches our D point as planned, I expect price volatility to have calmed after the french election- it should be stable enough to take an entry (especially being on the daily timeframe). You can clearly see that there is a history of support/resistance between 1.45 and 1.49.
Ps. We will for sure be looking for a reciprocal AB=CD within the 5-O as it develops.
5-o Ratios
B:1.13-1.618
C:1.618-2.24
D:50%
Связанные идеи
USDCAD Short
KyleMcQuade
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