In this trade, i'm trying out something new. Combining Wolfe Waves along with Andrew's Pitchfork. In the below chart, we see a bearish Wolfe Wave pattern. I have then plotted the median line (Pitchfork) to see how price is behaving.
We see that price touched the median line and then started falling. I have placed a stop loss above the resistance point at 1.307 with take profit at 1.2936, the price where the Wolfe Waves, 2, 4, and 1, 4 converge.
Of course, the risk to this trade being that price could reverse back to the median line. However, considering that price did hover around the median line before turning lower, it would be a safe bet.
Entry was at 1.3057.
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