August 26

A perfect Wave Pattern

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Originally Drafted 7/17/2013 but forgot to post!

One of my favorite instruments to research are exotic currency pairs.  The spreads make it difficult to take trades on any timeframe lower than a 4Hour/2Hour but doing monthly scans of all pairs available for trading can yield great Daily/Weekly/Monthly setups for trades.  Often times it seems to me that these are the LEAST manipulated by major market players and classic price action formations can express themselves in textbook ways.

An example which I realized this week was the GBP/THB (credit to Allan for pointing out the pair’s countertrend action).  This pair since March has demonstrated a 3 month institutional trend within a textbook Elliot wave pattern.

 Update 8/26/2013

On 8/7/2013 I took profits on this pair but since it has continued the 5th wave higher and higher.  This is an interesting study for two reasons; I can confirm the Wave price action on this pair and also confirm my probability rules that state that a major Pullback to the top of the cloud has a high probability of retesting and breaking the pivot high.  In this case it essentially held the top of the cloud on the Daily to continue past the pivot high.


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