Top Trade Idea For November 6th, 2014 – EURUSD
By Mircea Vasiu on Nov 6, 2014 12:51:29 GMT
Into this ECB day I would like to place pending buy limit orders to go long on any move below 1.2440 area, having a stop loss at 1.2300 and a take profit at 1.2880
After last week’s analysis on the eurusd brought us some nice profits as the target of 1.2337 was reached, I would still say there is enough room for the market to go an take a look below previous lows we had this Monday.
Wave 5 green that you can see on the chart above is no impulsive move and it is no falling wedge either. However, it is an impulsive move in a terminal fashion, with the 5th wave extension.
Such pattens are quite rare, but they can be extremely rewarding, in the sense that if the 5th wave is the extended one, then market needs to go 161.8% when compared with the 3rd wave, added at the end of the 5th.
Sounds complicated? Well, it isn’t, and in plain English it means any move into the 1.2440 should be aggressively bought as such terminal moves are always completed retraced.
That means market should move into the 1.2880 area where wave 5 green actually started and that is the place for the stop loss to be.
It remains to be seen if markets will confirm this scenario.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
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