EURUSD - Bullish Wolfe Wave

The hourly chart on EURUSD shows a bullish Wolfe Wave pattern being formed. Currently we are waiting for point 5 to be plotted in order to go long.

EURUSD - Bullish Wolfe Wave Pattern

I have also plotted the Median Line in order to give a bit more clarity for price reversal. Presently, price action is hovering close to the upper median line. Plotting the 55, 21 EMA's we see a buy set up that was last formed, thus hinting at an upcoming sell set up.

In regards to the median lines, what's interesting to note is that according to the current median line (sloping downwards) we don't get much clarity into price action. In other words, where do we short EURUSD (although it is not recommended, especially when against a bullish wolfe wave pattern).

EURUSD - Bullish Wolfe Wave, Median Line

The next ideal thing to do is to plot another median line that points upwards (which we generally use for our price targets, in relation to a bullish wolfe wave).

EURUSD - Bullish Wolfe Wave - Price Objectives

 From this new median line it is a bit more easier to notice. In other words, a short trade can be initiated based on a break of this new median line. The stops would then be the most recent previous peak at 1.34088

The target levels would be the price action along the TL1-3 followed by point 3 at 1.32966. I will continue following up on this trade and see how the median lines can help in identifying price reversals before hand.