I'm already in LONG on this pair by way of my just posted analysis on this pair (see Related Idea: "ANALYSIS: AUDUSD: Is Wave 3 Done? If So, Where Will Wave 4 Go?") and also this POSSIBLE POTENTIAL bearish shark pattern's CD leg. I am putting my S/L at 0.69610 to give this trade some room and also to allow the C point of that cypher I posted in my analysis to establish should prices fall more.
If or when the shark completes, then I would expect prices to retreat back down to complete the bullish 5-0 pattern before going back up to finish wave 4 and hit the Wolfe Wave targets. For those that don't know hat I am referring to, please see my ANALYSIS post. Also notice that the shark pattern would complete at/near the upper trend line of the ending diagonal which should cause a brief rejection before breaking through. This is typical pattern breaking price action.
I would expect prices to target around the 72-74 cents level (yes, I know I said 72-73 cents in my analysis) to complete wave 4.
Good luck!
*DISCLAIMER: Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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yes, sorry! Typo. I meant the S/L @0.68610. My mistake!
Don_Corleone
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Nice entry!Sadly,I missed this one
EverythingForex
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Next time, Don! You always hit more good ones than you miss anyway!
01tnguyen
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thank you very much for your guiding. I hope one day i can be as good as you. Thank you again for your reply and great charts :)
EverythingForex
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you're welcome and good luck!
Hange
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hi, man, does any requirement for B point in shark pattern, B should over 0.382XA or other requirement? I googled but living in China, cant find more information
EverythingForex
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Yeah, I'm in China as well and I understand it ain't easy to get access to good information here. But no, the answer is no. Shark patterns do not have any specific requirement for the "B" point. The B point as in regular advanced patterns isn't the B point in a shark pattern. That is why. The shark is actually labeled 0XABCD with the usual B point being and A point in a shark. Here I attached a chart for you.....
Hange
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Thank you ,so nice of you ! Is B between 1.13-1.618 extension of OX, can I short at C, long at D? And in this pattern, which point is the best to trade?
EverythingForex
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The B point in a shark is the fib extension of the XA leg. If you are purely trading he pattern, then yes, you would short at C and go long at D. But remember, I am NOT a pure pattern trader. For me, there has to be other valid reasons as well as valid price action for me to take a trade. Not just be cause prices reached any point. In this instance, the C point of the shark would reach the upper trend line of the diagonal triangle which should provide some resistance and send prices back down to possibly reach and complete the 5-0 pattern. Since I am expecting prices to break the diagonal triangle and eventually reach up to the Wolfe Wave completion, then yes, I would expect to be able to go LONG at D and catch pips going up. Well. that's the plan anyway. We'll see what happens if/when prices do reach those points. Good luck!
01tnguyen
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I'm a big fan of your analysis, and thank you very much for your time to post all these charts. I want to learn how to do it also.I'm really appreciated if you could help me. When you look at the price action how do you know what shape it is?