Here's another interesting chart. With the recent wave going down, there was a slight collapse as price fell below the wave base. When I see that sort of behaviour, I start looking for an entry to short. Right now price is at 1.9828 with the high around 1.9915. If I wanted to trade this aggressively I would short now and place stops around 1.9915. However... that's not the point of this exercise. Instead I'm going to wait to see if it actually does turn around and if it does, that's when I'll short targeting the new base below the orange line and beyond.
IF price ends up going higher and breaking the area where the blue line is placed, it tells me there is a possible trend change. That means I'll wait for price to fall and bottom out then start buying the dips. That's all I'm really doing.
IF price ends up going higher and breaking the area where the blue line is placed, it tells me there is a possible trend change. That means I'll wait for price to fall and bottom out then start buying the dips. That's all I'm really doing.