DislikedSo this was a bounce in a down trend with the 60m and 15m charts both trending down.
Here the spike up to the M 3 pivot at 209.10 failed to reach the previous high of 209.22 - a clear warning of weaknes.
Walking my 5m IFib to take in the latest action we can see that price retraced into the DZ and bounced just above the 50% line BUT then failed to clear the upper Alert Line (23.6% level) It had 3 attempts before dropping out of the bottom of the DZ to bounce off the lower AL (76.4%) for another attempted rally which also failed.
So now it was sell the 50% fib OR the exit from the DZ.....T1 is at 207.80 for a minimum of 70 pips with T2 worth 94 pips......more dubloons for my Pirate Bank! http://www.forexfactory.com/images/icons/icon10.gifIgnored
Also, the first time it broke out of the DZ to the short side seems like it would have caused you to get stopped out as well, looks like there were several false exits of the DZ before price actually went somewhere. How can you avoid getting whipsawed to death in this case?