update on chart ....... violent to the extreme
frustrating really ,knew it was going to happen ,waiting for it to happen .. but when it happened just got a few nibbles. i have a couple of colleagues who are not really into the whole trading thing, more your long term , big picture guys . they both took out long term short nzd dollar postions ,one through options the other through leveraged account, 6 month time frame and they got it all , im sure there is a lesson in that , the pot of gold is definitely in the big picture moves.
You're not wrong there Peat. Some rather nervous folk around
We are now coming into some heavy traffic around the 0.6880 - 0.6920 area, including the 61.8% retracement of the move up from the Friday 17th low. As a result I have tightened up stops now. But my word, I must say I love these swift moves (when on the right side!).
At this stage the move from the 17th is clearly an ABC correction. The question for me is are we currently in a X wave to be followed by a further ABC or are we at the beginning of the next impulse wave down. If we take out the low of the 17th then something "ugly" is happening. A hard landing perhaps?
The brown box at the top of the chart is from the Butterfly pattern starting mid 2006 which has been forming in the wings all that time (see my post and chart #698). The completion? of this long term pattern formed a new Green bearish butterfly, which gave over 1400 pips and with the action being at the first target (green) box now.
The wave count has a number of possibilities, so for now look at the uptrend line for possible support/target (circa 6500). If that breaks check with me again and I will give you the lower BF target box parameters.
I am presently riding the action down with a trailing stop until it gets hit.
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