Dislikedhappy xmas pretty...and happy xmas all...
Last friday, 15min time frame, i saw a upmove spike, 1.2600 to 1.2650 seems be wave 5 but wave 4 did 50% retracement, what could mean that is not wave four nor that is not wave 5...and maybe can be still wave 3...and 38% retracement 4hour chart is 1.2740 area...
once trend this pair is down like a stone, i would be sure is a good chance to enter short...but that monthly support scary me. lolIgnored
Meaning if you see a larger degree wave it must be wave#3..( IT CAN ALSO BE WAVE#1 OR X wave)..
All waves have certain charactersticks and rules and minimum requirement.( MOST OF THEM ON FIRST PAGE OF THIS THREAD.)
The way you have labelled them for example wave#2.. IT IS NOT A THREE WAVE structure nor a triangle or anything but seems like an impulse...
In order to labell them correctly ..one has to know what happened in the past .. right from the begining... to know how it should end..
What I am trying to say is all waves have Rules ( WAVE#4 should not enter wave#1. is not the only one)
TO predict the market structure one has to follow all the rules and come up with the most probable scenario( THERE CAN BE MORE THAN ONE probabilities at any given time)
Therefore labelling is not that easy..One can go crazy labelling..
For everything about trading..visit.
http://www.thepatternsite.com/
Markets are not Random, they are designed!