As stated by the title we are setting up for a very big downside move should the forecast play out as expected. (300-500 pips). As of now we still don't know whether we are forming a Flat correction or an Expanded Flat correction on the major degree but definitely looking towards the downside. We did get a major Shooting Star candle at a very important level and the Stochastic is moving into overbought regions so we are already getting some hints.
Refer to the Related Ideas section for my previous GBPAUD idea, where the predominant trend is to the upside however we are presented with a short opportunity at the moment.
For risk and money management purposes, always determine a max. of 2% risk on every trade. For example on a $50,000 account, this would be equivalent to 1,25 Lots with an 80 pip stop loss. Targets and closure of positions may be subject to alteration throughout the course of the trade. This is due to the ever-changing and unpredictable nature of the market. This post is set to be used and serve as an example and in an educational manner and is not to be taken as direct investment advice.
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downside bias still remains despite the strong push up since it was strongly rejected. Classic move to break a top and drive the price back down. Still interested in the short
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as it stands we're looking at an expanding flat where legs a and b are almost completed and looking for leg c. Confirmation would be a strong impulse down followed by a flag to indicate continuation