IN that post I explained the most basic Elliott pattern and how to trade it after a correction typically expected to reach the 50 to 62% Fibonacci Retracement. However, I also explained that sometimes markets don’t retrace to the expected levels and I gave a clear and simple technique for entering the EURGBP if that were to happen.
As luck would have it, that was exactly what happened. EURGBP did not even reach the 50% retracement and turned back up. Still our readers were able to take advantage of it by entering once price closed above the Moving Average as explained in my previous post.
On this chart you can see that Price reacehd precisely the lower boundary of the corrective channel (another trading opportuntiy) and rally from there. The lower boundary of the corrective channel is also expected to provide support during corrective structures as it did in this case.
Every thing looked ideal to our trade until today when there is a moment of doubt for the pattern. So my recommendation now is to take profits in the larger portion of the trade and rise the stop on the remaining position to 0.8880
That should be done immediately!
Prof. Aldo Lagrutta is a Certified Financial Technician from the International Federation of Technical Analysts. He holds several financial market designations, including the coveted Certified Elliott Wave Analyst, Member of the Society of Technical Analysis and the CFTe. He’s also a recipient of the Bronwen Wood Prize bestowed by the Society of Technical Analysis in London. Lagrutta has been teaching the Wave Principle for more than 10 years and is the founder of www.elliottwavemadeeasy.net and www.aldolagrutta.com a professional trader education company that offers easy to use and highly effective indicators along with in-depth comprehensive educational programs. As a yoga acharya, certified success coach and professional concert artist, he has specialised knowledge and training in the field of performance psychology which he successfully integrates into all his training programs. Currently, he is the COO at Stanton Analytics, a company that serves 8 of the top 10 major oil corporations in the world.