What we're seeing is a possible reset short. Remember resets are most common in L2. Here's a perfect example of why we trade with an open mind and never become attached to any one direction.
Daily: Short H4: Bearish Harmonic H1: L2 short, EMAs crossed down
The market is a little shaky due to the news. Anything can happen. Trade according to your trading plan.
Why do you think it's a reset and we are now bearish on EU?
Is it because the EMA's have crossed locking the peak?
Other MMM teachings suggest price action must make at least an 1xADR move in one day to lock the peak, any thoughts on that?
Resets are common in L2. In my opinion, we were in L2 long so we knew a reset was a possibility. When we are in L2, with proper confirmation, you can take trades both ways. The cross of the EMAs gave an indication the peak 'could' be locked soon and price could go into a bearish cycle. As for the 1xadr rule that you mentioned, yesterday's price dropped 43 pips from the high which is pretty average for EU. For those reasons I went into today knowing that a short was a possibility. Seeing the London pattern set up during the session was the final confirmation.
Why do you think it's a reset and we are now bearish on EU?
Is it because the EMA's have crossed locking the peak?
Other MMM teachings suggest price action must make at least an 1xADR move in one day to lock the peak, any thoughts on that?
Regards,
QJ