Wednesday, September 5, 2012

USDINR - Elliott Wave Update

4 Hourly Chart
We have been discussing about the flag pattern in wave {2} on USDINR in our previous  update, the said pattern did test our patience, but finally today the fag has staged a breakout. Now on the chart above our preferred count suggests that we may rise in wave (c) of [b]. In that case we may test the levels around 56.75. But for that we have to take out first the crucial resistance around 55.97 levels. As soon as we take that out we may see 56.75 on USDINR. I am keeping the SL for the buy trade on BO from the flag at 55.40. So you have a risk of 0.43 against a reward of 0.92, so the reward to risk ratio comes at 2:1, which is not bad.

Note: There are many possibilities at play, I have a tendency to play the most conservative scenario, to keep expectations realistic, and volatility of my trading portfolio minimum.