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Harmonic Patterns

GBPCHF Nearing Completion of Bearish Harmonic PatternGBPCHF Nearing Completion of Bearish Harmonic Pattern Today, the economic calendar was empty, yet GBP displayed unusual bullish moves. Considering that the price is near a strong zone where it has been rejected several times, the odds are that GBPCHF may move down again. If the pattern completes, the price could drop from 1.1300. However, given CHF's long-term strength, it's possible the price might decline even before the pattern's completion. You may find more details in the chart! Thank you and Good Luck! ❤️PS: Please support with a like or comment if you find this analysis useful for your trading day❤️
Short
by KlejdiCuni
7
Update on USDT.D: Is Alt Season on the Way?According to my chart and the breakdown of strong dynamic support up to the psychological resistance of 5.00%, the dominance of Tether has now risen for confirmation of a drop to a critical area where static and dynamic resistances have converged. In my opinion, Tether's dominance will experience a significant drop to 3.80. Moreover, it is possible that the U.S. elections may have a sharper impact on it, leading to a drop that is direct and without fluctuations.
CRYPTOCAP:USDT.DShort
by ScorpionX_Co
1
$BOME/USDT 1H - Short Setup Analysis $BOME/USDT 1H - Short Setup Analysis 📉 I'm looking at a potential short setup on $BOME. Currently, we can see price action testing the recent support around the 0.0077 level after a sustained downtrend. The price has been respecting a descending trendline, and each bounce has been met with selling pressure, pushing it lower over time. Key Levels: Entry Zone: Just below the 0.0077 level after a confirmed break and retest. Take Profit Targets: First TP: 0.0069 Second TP: 0.0059 Stop Loss: Placed around 0.0080 to allow for minor pullbacks without risking too much. Technical Indicators: Price has been trading below both the 50 EMA and 200 EMA, indicating bearish momentum is still strong. The decreasing volume on the recent consolidations suggests weakness in the buying power, supporting the possibility of a breakdown. Strategy: I'm planning to enter this short if we get a clean breakdown and retest of the 0.0077 support. A close below this level on a 1H candle would confirm the entry signal. My first target is 0.0069, a previous support level. If bearish momentum continues, we could see price reach as low as 0.0059, a stronger support zone. Stop loss is set tightly above the recent consolidation highs to manage risk effectively. Let's see if the bears can maintain control here!
Short
by TrendShredder
1
XAUUSD Near Critical Support: Rebound or Further Decline?The current XAUUSD chart shows gold hovering near the crucial support zone of 2,713-2,725, with the 34 and 89 EMAs serving as primary support levels. If the price holds above this support, gold may rebound towards the nearby resistance level of 2,756.603. The RSI is signaling oversold conditions, suggesting a potential short-term recovery. A cautious strategy would be to observe price action at the support zone and wait for confirmation signals before entering a buy position, capitalizing on the potential upside from this level. However, if the support zone breaks, the downtrend could continue, with the next target at a deeper support level.
OANDA:XAUUSD
by Zola_Hello
The Euro is slightly declining, and a reversal is possible.Hello everyone, Today, the EUR/USD exchange rate is trading around 1.08336 USD for each 1 EUR, showing a slight decrease compared to the previous session. This decline is primarily driven by a strong recovery of the USD, supported by positive economic data from the U.S., indicating that the economy is stabilizing. The increase in U.S. government bond yields also contributes to the dollar's attractiveness, putting pressure on the Euro. Although the exchange rate is currently declining, there is a possibility of a reversal. If U.S. economic data does not remain positive or if the ECB takes strong actions to support the Euro, this could push the EUR/USD rate higher. Additionally, geopolitical factors and uncertainties in policy could create higher demand for the Euro.
by Ademha
Smart Money Trading concepts 101🔸The Smart Money Trading concept, often used in Forex and stock trading, revolves around the idea of tracking the moves made by major institutional players (like banks, hedge funds, and large financial institutions) rather than retail investors. Smart money strategies aim to identify and follow the price action patterns that large investors create, as these institutions often have access to more market-moving information and capital than individual traders. 🔸A critical part of this approach is understanding market structure, which includes concepts like Higher Highs (HH) and Lower Lows (LL). These patterns help traders determine the current trend direction and potential reversals, which can inform trading decisions. Here's how these concepts fit into the Smart Money Trading framework: 1. Higher Highs (HH) and Higher Lows (HL) in an Uptrend ▪️When the market is in an uptrend, it typically forms a series of Higher Highs and Higher Lows: Higher High (HH): Each new peak in the price is higher than the previous peak. Higher Low (HL): Each new low is also higher than the previous low. ▪️This pattern signifies strong buying interest, indicating that smart money may be accumulating positions in anticipation of further price increases. ▪️Traders look for breakouts beyond previous highs, as it often signifies a continuation of the uptrend. ▪️If the price breaks a recent Higher Low, it may indicate potential weakness and a possible trend reversal. 2. Lower Lows (LL) and Lower Highs (LH) in a Downtrend ▪️In a downtrend, the market structure often forms Lower Lows and Lower Highs: Lower Low (LL): Each new low is lower than the previous low. Lower High (LH): Each high in the price action is also lower than the previous high. ▪️This pattern signals that selling pressure is dominant, suggesting that institutional investors might be offloading positions. ▪️Traders watch for prices to break the most recent Lower High for potential continuation signals in the downtrend. ▪️If the price breaks above the most recent Lower High, it can indicate that the trend may be weakening, signaling a potential reversal or entry opportunity. 3. Using HH and LL to Spot Trend Reversals ▪️Trend Reversal: When a series of HH and HL in an uptrend shifts to LH and LL (or vice versa), it often signals that a reversal is underway. ▪️Smart Money traders use these shifts to spot market traps where retail traders might be misled, allowing them to capitalize on new trend directions as they unfold. 4. Smart Money Concepts in Action: Liquidity and Price Action ▪️Large players need liquidity to execute significant trades without causing excessive slippage (or price movement). This liquidity often exists near recent highs and lows. ▪️By analyzing HH, HL, LH, and LL patterns, smart money traders can identify areas of liquidity where institutions might step in. ▪️For example, a series of HHs might attract retail buyers, providing liquidity for smart money to enter or exit positions. 5. Application in Trading ▪️By following HH and LL patterns, traders can align their positions with smart money rather than getting caught in fakeouts or market traps. ▪️Traders often combine these patterns with other indicators (like volume, order blocks, or support and resistance) to confirm the presence of institutional involvement. 🔸The Smart Money approach relies heavily on understanding and interpreting these HH and LL structures to trade in sync with the institutions, avoiding common pitfalls that trap many retail traders.
Education
by ProjectSyndicate
3
What will happen to gold prices if Trump wins re-election?Hello everyone, Today, the global gold price is trading around $2,736 per ounce, down slightly by about 0.22% compared to the previous session. This decline is due to the stability of the U.S. economy, which makes investors feel less compelled to seek safe-haven assets. Rising government bond yields and a stronger U.S. dollar have also reduced gold's appeal. However, this may only be temporary. From my research, I believe Trump will win re-election. He holds a fairly aggressive stance on trade and policy. This approach creates tensions, driving investors to seek safe havens like gold—something that previously pushed gold prices higher during his first term. In summary, while gold prices are currently seeing a slight dip, their future outlook will heavily depend on Trump's policies and the economic shifts during his potential second term. Policy uncertainty could lead to higher demand for gold in the near future.
OANDA:XAUUSD
by Ademha
Be careful with Bitcoin !!!Currently, it can be said that Bitcoin has completed its fourth corrective wave and from now on, the price can be expected to rise to the top of the triangle. If the triangle breaks, we expect a new ATH to occur, but in new year. ✨We spend hours finding potential opportunities and writing useful ideas, we would be happy if you support us. Best regards CobraVanguard.💚 _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ✅Thank you, and for more ideas, hit ❤️Like❤️ and 🌟Follow🌟! ⚠️Things can change... The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
COINBASE:BTCUSDLong
by CobraVanguard
XAUUSD 1M1. Elliott Wave Analysis Wave 5 Completion at 1.618 Extension (2,747.14): The chart shows Wave 5 peaking at $2,747.14, corresponding to a 1.618 Fibonacci extension. This level is typically a significant reversal point, suggesting potential for a corrective move downwards. ABC Corrective Pattern Projection: After the completion of Wave 5, an A-B-C correction is projected. The expected trajectory shows a downward movement to the liquidity void zone, followed by a potential retracement up in a Wave B before a final decline in Wave C. 2. Wyckoff Distribution and Accumulation Phases Phase B (Accumulation - $1,046.23 to $1,920.80): This region marks the accumulation phase with a Sign of Weakness (SOW) in Phase B, where price forms a base before starting the upward trend. Notably, price action within this phase shows consolidation, preparing for a breakout. Phase C (Mark-Up): After the accumulation, price enters the mark-up phase, breaking past resistance and forming new highs. This phase is highlighted by significant upward momentum, taking the price into higher Wyckoff distribution phases. Distribution Pattern in Recent Highs: The recent highs around $2,747.14 align with Upthrust (UT) and Upthrust After Distribution (UTAD) signals, suggesting the end of the mark-up phase and a shift towards potential distribution. 3. Key Fibonacci Levels and Extensions 1.236 Extension (2,744.68): This level is another Fibonacci extension associated with Wave 5, acting as a point of possible reversal. Volume divergence at this level further indicates potential weakness in upward momentum. 0.618 Retracement (Inducement Wave 4): A 0.618 retracement from the previous lows serves as a key support level. If price retraces here during the corrective phase, it may offer a possible entry for continuation trades. 4. Liquidity Zones and Order Blocks Liquidity Void (3M): There’s a liquidity void in the three-month time frame, which price might revisit during the corrective move. This void represents an inefficiency where price could fill gaps created by the upward trend, making it an area of interest for re-entries. Buy-Side Liquidity (BSL): The Buy-Side Liquidity area near the recent highs includes stop losses and limit orders, making it a zone where institutional players might target liquidity. 5. Support and Resistance Levels Resistance Line - BC Distribution (1,920.80): This level acts as a strong resistance line in the accumulation phase. If price revisits this area, it may encounter selling pressure. Support Line - AR Distribution (1,525.84): The support around $1,525.84 represents the Automatic Rally (AR) point in the Wyckoff structure, marking a potential level of demand if price retraces to this level. 6. Break of Structure (BOS) BOS in Wave 3 (12M): The Break of Structure in Wave 3 on the 12-month chart indicates a potential shift in the trend’s momentum, suggesting possible trend continuation or reversal. BOS within Phase B (3M): Another BOS is marked in Phase B, highlighting a structural shift in sentiment. This often leads to an uptrend or a change in market direction as the BOS level confirms a key pivot point. 7. Dealing Ranges and Key Points of Control (POC) Dealing Range (12M-3M): This range, spanning the recent swing highs and lows, establishes boundaries within which price is expected to fluctuate. The Point of Control (POC) within this range often corresponds with areas of high volume, which could act as pivotal zones for price movement. Current Trend (Dealing Range for Wave 4): The range defined for Wave 4 provides insight into ongoing price action. Watching for breakouts or breakdowns within this range could indicate the next potential trend direction. 8. Proposed Trading Plan for Upcoming Weeks Short-Term Correction Expected: With Wave 5 likely completed, a corrective A-B-C structure appears probable. This suggests a short-term downtrend toward lower support zones. Target Zones: Downside: Potential retracements to $1,920.80 and $1,525.84 are key areas to monitor. These support levels could act as potential bounce points or re-entry zones if the price holds. Upside Resistance: If price revisits the recent highs near $2,747.14, look for bearish setups, as this level may act as strong resistance in the corrective phase. Volume and Divergence: Watch for volume divergence or signs of weakness at the 1.618 and 1.236 extensions to gauge the potential for continued reversal. This can provide additional confirmation for trend reversal setups. Summary of Key Observations Wave 5 completion at $2,747.14 suggests corrective phase ahead. Wyckoff Distribution structure signals potential downside with liquidity voids targeted. Key Support and Resistance zones at $1,920.80 and $1,525.84. Expected A-B-C Correction aligns with price filling previous gaps and testing support.
FX:XAUUSDShort
by spacedevil
XAUUSD 3M 1. Elliott Wave Structure and Key Levels Wave 5 Completion (2,747.14): The fifth wave peaks around $2,747.14, reaching a 1.618 extension, suggesting this could be a point of reversal. The formation of volume divergence at this level indicates potential weakness in bullish momentum, marking a critical level to watch for a possible trend change. Wave 1 (Current Correction Phase): The chart shows a beginning corrective move from Wave 5, indicating an A-B-C structure may follow. This corrective phase could bring prices down to fill previous gaps and approach key support levels. 2. Wyckoff Phases and Distribution Structure Phase A (Accumulation - $1,046.23 to $1,512.84): This phase includes a consolidation around the $1,046.23 low and forms the base before a significant rally. The Automatic Rally (AR) and Secondary Test (ST) suggest the end of Phase A and a potential upward shift in market sentiment. Phase B (Mark Up and Distribution at Resistance): After accumulation, prices move up in a mark-up phase, testing the Resistance Line of BC Distribution. This area includes Upthrust (UT) and Upthrust After Distribution (UTAD), which are signs of potential distribution before a downtrend. Phase C (Breakdown Expected): Phase C may involve the start of a downtrend from Wave 5, with price likely returning to lower levels for further testing. This phase includes the Sign of Weakness (SOW) and anticipates a retest of support near $1,512.84. 3. Fibonacci Levels 0.618 Retracement ($890.62): The 0.618 retracement level is marked as a strong support, below which price should not pass without invalidating the bullish wave structure. This level could act as a long-term support area during the corrective phase. 1.236 Extension ($2,369.74): The 1.236 level marks a significant potential reversal area for Wave 5. A move back to this level could signal the completion of a deeper pullback, possibly a key point of interest for traders looking for long-term entries. 4. Liquidity and Key Order Blocks Liquidity Void: The chart highlights a liquidity void in the three-month time frame (3M), representing an area where price may revisit to fill previous inefficiencies. This void may act as a magnet, attracting price downward in the corrective phase. Buy-Side Liquidity (BSL) Area: The Buy-Side Liquidity (BSL) near the recent highs represents a key area where stop losses and limit orders are likely concentrated. This region may experience volatility as larger players look to capitalize on retail stop losses. 5. Support and Resistance Lines Resistance Line - BC Distribution ($1,720.00): The $1,720.00 level acts as a key resistance line in the distribution phase. A break above or below this level in Phase B may confirm the direction of the trend and could signal a shift in momentum. Support Line - AR Distribution ($1,512.84): The $1,512.84 level serves as a critical support in the accumulation phase and may act as a bottom if the market revisits this area in the corrective structure. 6. Break of Structure (BOS) and Market Sentiment Shifts BOS Wave 3 (12M): The Break of Structure (BOS) in Wave 3 on the 12-month chart signals a major structural shift, often indicating the end of one trend and the beginning of another. This point may see increased volatility and shifts in market sentiment. BOS in Phase B (3M): The BOS within Phase B on the three-month time frame highlights potential points of interest for continuation or trend reversal. It indicates that a shift in sentiment may occur, influencing market participants to prepare for trend changes. 7. Dealing Ranges and Points of Control (POC) Dealing Range (12M-3M): This range, marked at recent swing high and low levels, provides a boundary for price movement, with the Point of Control (POC) likely aligning with high-volume areas. The dealing range helps in identifying areas where price could consolidate or reverse. Current Trend (Dealing Range for Wave 4): The range defined for Wave 4, including swing highs and lows, offers insight into the ongoing market structure. Observing price behavior within this range helps to gauge the momentum of the corrective wave. 8. Next Week’s Trading Plan Primary Strategy: The corrective phase is expected to continue, with a probable downward move to fill liquidity voids and test lower support areas. Key Target Levels: Downside Targets: Monitor support around $1,720.00 (Resistance Line) and $1,512.84 (Support Line). These levels could provide entry points if price tests and holds as support. Upside Targets: Watch for potential shorting opportunities if price retests resistance near the recent swing high at $2,747.14. Risk Management: Stop-loss orders should be placed above recent highs around $2,800.00 to manage risk if there’s an unexpected upward move. Volume and Price Action: Look for volume divergence or signs of weakness near resistance levels, especially around the 1.618 level ($2,747.14), as they could signal a trend reversal. Summary of Key Points Wave 5 likely completed at $2,747.14, with a corrective A-B-C structure now underway. Wyckoff Distribution phase suggests further downside as Phase C unfolds, targeting key support levels. Liquidity voids and POC levels act as magnets for price, which may revisit these areas during corrections. The Resistance Line at $1,720.00 and Support Line at $1,512.84 are essential for tracking entry and exit points in line with the current downtrend.
FX:XAUUSDShort
by spacedevil
XAUUSD 3M 1. Elliott Wave Structure and Key Levels Wave 5 Completion (2,747.14): The fifth wave peaks around $2,747.14, reaching a 1.618 extension, suggesting this could be a point of reversal. The formation of volume divergence at this level indicates potential weakness in bullish momentum, marking a critical level to watch for a possible trend change. Wave 1 (Current Correction Phase): The chart shows a beginning corrective move from Wave 5, indicating an A-B-C structure may follow. This corrective phase could bring prices down to fill previous gaps and approach key support levels. 2. Wyckoff Phases and Distribution Structure Phase A (Accumulation - $1,046.23 to $1,512.84): This phase includes a consolidation around the $1,046.23 low and forms the base before a significant rally. The Automatic Rally (AR) and Secondary Test (ST) suggest the end of Phase A and a potential upward shift in market sentiment. Phase B (Mark Up and Distribution at Resistance): After accumulation, prices move up in a mark-up phase, testing the Resistance Line of BC Distribution. This area includes Upthrust (UT) and Upthrust After Distribution (UTAD), which are signs of potential distribution before a downtrend. Phase C (Breakdown Expected): Phase C may involve the start of a downtrend from Wave 5, with price likely returning to lower levels for further testing. This phase includes the Sign of Weakness (SOW) and anticipates a retest of support near $1,512.84. 3. Fibonacci Levels 0.618 Retracement ($890.62): The 0.618 retracement level is marked as a strong support, below which price should not pass without invalidating the bullish wave structure. This level could act as a long-term support area during the corrective phase. 1.236 Extension ($2,369.74): The 1.236 level marks a significant potential reversal area for Wave 5. A move back to this level could signal the completion of a deeper pullback, possibly a key point of interest for traders looking for long-term entries. 4. Liquidity and Key Order Blocks Liquidity Void: The chart highlights a liquidity void in the three-month time frame (3M), representing an area where price may revisit to fill previous inefficiencies. This void may act as a magnet, attracting price downward in the corrective phase. Buy-Side Liquidity (BSL) Area: The Buy-Side Liquidity (BSL) near the recent highs represents a key area where stop losses and limit orders are likely concentrated. This region may experience volatility as larger players look to capitalize on retail stop losses. 5. Support and Resistance Lines Resistance Line - BC Distribution ($1,720.00): The $1,720.00 level acts as a key resistance line in the distribution phase. A break above or below this level in Phase B may confirm the direction of the trend and could signal a shift in momentum. Support Line - AR Distribution ($1,512.84): The $1,512.84 level serves as a critical support in the accumulation phase and may act as a bottom if the market revisits this area in the corrective structure. 6. Break of Structure (BOS) and Market Sentiment Shifts BOS Wave 3 (12M): The Break of Structure (BOS) in Wave 3 on the 12-month chart signals a major structural shift, often indicating the end of one trend and the beginning of another. This point may see increased volatility and shifts in market sentiment. BOS in Phase B (3M): The BOS within Phase B on the three-month time frame highlights potential points of interest for continuation or trend reversal. It indicates that a shift in sentiment may occur, influencing market participants to prepare for trend changes. 7. Dealing Ranges and Points of Control (POC) Dealing Range (12M-3M): This range, marked at recent swing high and low levels, provides a boundary for price movement, with the Point of Control (POC) likely aligning with high-volume areas. The dealing range helps in identifying areas where price could consolidate or reverse. Current Trend (Dealing Range for Wave 4): The range defined for Wave 4, including swing highs and lows, offers insight into the ongoing market structure. Observing price behavior within this range helps to gauge the momentum of the corrective wave. 8. Next Week’s Trading Plan Primary Strategy: The corrective phase is expected to continue, with a probable downward move to fill liquidity voids and test lower support areas. Key Target Levels: Downside Targets: Monitor support around $1,720.00 (Resistance Line) and $1,512.84 (Support Line). These levels could provide entry points if price tests and holds as support. Upside Targets: Watch for potential shorting opportunities if price retests resistance near the recent swing high at $2,747.14. Risk Management: Stop-loss orders should be placed above recent highs around $2,800.00 to manage risk if there’s an unexpected upward move. Volume and Price Action: Look for volume divergence or signs of weakness near resistance levels, especially around the 1.618 level ($2,747.14), as they could signal a trend reversal. Summary of Key Points Wave 5 likely completed at $2,747.14, with a corrective A-B-C structure now underway. Wyckoff Distribution phase suggests further downside as Phase C unfolds, targeting key support levels. Liquidity voids and POC levels act as magnets for price, which may revisit these areas during corrections. The Resistance Line at $1,720.00 and Support Line at $1,512.84 are essential for tracking entry and exit points in line with the current downtrend.
FX:XAUUSDShort
by spacedevil
XAUUSD 12M 1. Elliott Wave Structure Overview Wave 1 to Wave 5 (Impulse Waves): The chart outlines a classic five-wave impulse structure, indicating a long-term uptrend for XAU/USD. This sequence suggests a series of strong moves up, with each wave climbing to higher price levels. Wave 5 Completion: The fifth wave appears to have reached its final stages, potentially signaling the invalidation extension above Wave 5 if the price moves higher than 3,187.83. This marks the end of the impulsive phase and could lead to a corrective phase (A-B-C pattern). 2. Corrective Phase (A-B-C Waves) Wave A (Initial Decline): If Wave 5 is complete, we may see an initial decline in prices, marking the start of Wave A in the corrective phase. This move typically retraces the preceding impulse and could lead prices toward lower support levels. Wave B (Corrective Rally): Wave B is often a short-lived rally within the larger downtrend and may present a false breakout or inducement for retail traders. This rally can lure traders into buying prematurely, only for the market to resume its decline. Wave C (Continuation of Decline): Following Wave B, Wave C typically resumes the downtrend. This final corrective wave might present a significant buying opportunity as it reaches strong support levels, such as the Point of Control (POC) around the 1,400.00 area, a common zone of equilibrium in the market. 3. Key Fibonacci Levels and Their Importance 0.618 Retracement: Fibonacci retracement levels like 0.618 are crucial for identifying support zones during corrections. This level, marked at around 890.62, is annotated as MUST NOT PASS WAVE 1 INVALIDATION, indicating a strong support area in the corrective phase. 1.236 and 1.618 Extensions: The 1.236 and 1.618 Fibonacci extensions are key indicators of possible trend exhaustion. Specifically, 1.618 at 2,778.78 is noted as the potential maximum for Wave 5, signaling an area of volume divergence where momentum might start to weaken. 4. Volume Divergence and Implications Divergence in Volume on Wave 5: A decrease in volume while prices continue rising (volume divergence) in Wave 5 implies that buyer momentum may be fading. This could be a signal of an upcoming reversal or correction phase, aligning with the start of Wave A in the corrective structure. 5. Break of Structure (BOS) Key BOS Levels: Break of Structure (BOS) marks areas where the market structure changes direction, signaling potential trend shifts. For example, BOS MSS Wave 1 (12M) indicates a structural shift in the first wave that could influence future trend changes. BOS in Wave 3 (Potential Trend Shift): The BOS in Wave 3 may guide the corrective phase. If these BOS levels hold, they serve as critical areas of support or resistance during corrections, guiding potential entry or exit points. 6. Price Levels of Interest Point of Control (POC): The POC, a high-volume node around 1,400.00, represents a point of interest and a key equilibrium area. In corrective phases, prices often return to this level, serving as strong support and a potential buy zone. Premium and Discount Zones: The chart uses premium and discount zones to signify favorable buying and selling areas. The discount zone reflects levels where prices are seen as relatively low, and a buy opportunity might arise. Conversely, the premium zone signals overbought conditions and potential sell opportunities. 7. Market Psychology and Retail Traps Inducement and False Breakouts: Terms like inducement Wave 4 (12M) highlight areas where retail traders may be led to buy or sell at suboptimal times. The fake breakout in Wave 4 suggests that traders might be lured into taking long positions, only for the market to reverse downward. Markup Phase (12M): The markup phase typically occurs when institutional players drive prices higher, accumulating positions at lower levels before pushing the market up. The return to the flip zone indicates where institutional interest often lies, triggering rallies as it becomes a point of interest. 8. Next Week’s Trading Plan Based on the analysis above, here’s a structured plan: Primary Strategy: Seek short-selling opportunities if the chart is entering Wave A of the corrective phase, with the expectation that the market may decline in the short term. Target Levels: Wave A Support Zone: Watch for reactions at the 0.618 retracement level, around 890.62, which is annotated as a must-not-pass zone for invalidation. This area could attract buying interest if the price dips. Wave B Resistance Zone: If Wave B forms, consider this a temporary rally. Short positions might be ideal if the price reaches the premium zone, signaling overbought conditions. Wave C Completion: Look for a significant buy zone if prices reach key levels, such as the Point of Control (POC) near 1,400.00, marked as a point of interest and equilibrium zone. Risk Management: Place stop-loss orders above the invalidation extension above Wave 5 at 3,187.83 to control risk if the wave count is proven wrong. Volume and Price Action: Monitor volume spikes and price action during corrective moves to confirm trend reversals or trend continuations. Summary of Key Points The analysis suggests that Wave 5 may have peaked, with a corrective A-B-C structure likely to follow. The corrective phase provides potential sell opportunities in Wave A and B, while Wave C could mark an ideal buy zone. Use premium and discount zones to identify favorable buying and selling areas, and watch for retail traps like inducement and false breakouts. Equilibrium areas like the POC (around 1,400.00) serve as potential support zones for longer-term buy positions.
FX:XAUUSDShort
by spacedevil