Are you aware of the Three-Drive pattern? If not, this is roughly how it works:
- Corrections A and B are on the 0.618 Fib level of each drive (arrows 1,2, and 3).
- Each drive bounces on the 1.272 Fib level of its previous correction (aka A and B).
- Time needed for correction/drive to be completed must be the same for every correction/drive.
On the 4hrs time-frame of EUR/CHF, it seems that this pattern is nearly done.
Once drive 3 is completed, the price will most probably bounce.
But who knows?
That’s right, NOBODY knows!! So you better use Stop loss (SL) AND Take Profit (TP) on EVERY trade.
Suggested SL: 1.618 Fib level of correction B.
Suggested TP: 0.618 Fib level of Drive 2.