This is a ‘Time’ trade idea based on Elliot and Fibonacci and the fact that the world is pretty much bearish on the Euro.

If prior impulse waves have lasted for approximately 15 candles in a months time then the recent rally is currently at a 15 candle count that could complete wave ‘a’ in a corrective W:4 series as outlined in my earlier post ‘E/U Then & Now.’ In Elliot theory corrective waves are overlapping by nature and with the 100% retracement shown that’s certainly an indication of a correction being underway. Note, the counter trend moves to the impulse waves highlighted lasted for approx 8-10 candles (not shown) so if price falls from here then the candle count can be in that range as well so plan accordingly.

It might just simply be worth taking a short position at this price level for a risk reward type trade of 1:5 or risk 50 pips to make 250 pips potentially if price runs down to 1.0500.

Lets see how it plays.

**If you followed my last E/U plan my results ended up with a net gain of 10-15 pips on 3 trades. Not a home run certainly but not a blood bath either with proper risk management. That’s trading tho!

Daily

One thought on “E/U in Correction”

  1. ARUN says:

    Great idea. this reflects the short squeeze of the bear sentiment in the gbpusd that started after the May weekend speech.

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