TRADE: AUDUSD: BUY@0.69554 Goldilocks Reversal + .786 Trade

Sep 10, 2015

This pair has now done a retest of the lows. Typically, when there is a major reversal, this is what will typically happen. The lows will get retested usually to what I refer to as the "Goldilocks Zone" which is between .681 and the .886 retrace of the initial move away from the low/high. Of course in this case, the lows. This also triggered the ".786 trade" setup.

Also, according to my wave count, the initial move up was a 5-wave pattern. In my overall wave count, I am projecting this move up as a wave (4). Judging by the initial wave up being a 5-wave move, it could be that the wave (4) will unfold as a 5-3-3 ABC zigzag pattern with this new move up being another 5-waves. So if buying now, it could be that we would catch the very beginning of the next 5 waves up.

While still too early to be able to say with any certainty, there looks to be a POSSIBLE POTENTIAL bearish bat setting up with it's C point yet to be confirmed. If so, then the completion of the bat could be the end of wave (4) and then we will see a wave (5) down into new lows.

MY TRADE PLAN
I am already in long @0.69554 which was the .707 retrace. In addition, I am holding LONGS per a previous trade entry (see Related Ideas: "TRADE: AUDUSD: BUY@0.69170 LONG On Shark + Cypher"). I will be holding these LONGS for the completion of the bat.

*DISCLAIMER:
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!

If you like my posts and find them helpful, please take a second to hit that LIKE button and follow me so I will know my posts are useful to you. Doing so will encourage me to post more! As always, all constructive comments are welcome. Agree or disagree.