BarroMetrics Views: The Ray Wave Revisted
In Constructing A Ray Wave Count, we examined the AUDUSD from a 60-minute day-trading perspective. In this blog, I’ll update the AUDUSD and consider another use for the Ray Wave.
Figure 1 shows the count. I had taken day trade on Friday when the AUDUSD popped up above .9457 since it gave a possible Upthrust Change in Trend pattern. Today however, the price pattern negated the Upthrust. The current count shows that Wave (5) will be either the longest or shortest wave since Wave (3) was less than 1.618 of Wave (1). I am looking for the former given my view of the S&P (see video for this week).
The AUDUSD at time of writing has double topped with Friday’s high. A bearish close below .9439 would trigger a sell signal. The current (2) category is 127 points. If the market trades at .9314, we’ll have seen a retracement of greater than 20%. So that is the make or break point for this category. So we can use the Ray Wave as a confirming tool, even more acceptance below the maximum extension at .9312 (Fig 2 shows the Maximum Extension and the Primary Sell Zone).
For today then a bearish conviction close will see me short in a day trade with stops above either the maximum extension .9496 or above the highs of the day.
FIGURE 1 Ray Wave Count
FIGURE 2 Primary Sell Zone and Max Extension