AUDCHF Trade Opportunity; Triangle Pattern Signals More Upside

2022年5月19日

Triangles are an excellent pattern to watch for. They are trend continuation patterns, always occurring before the final move in a larger term wave sequence. Here in AUDCHF we have a very clear triangle pattern, consisting of 5 subwaves, labeled abcde. Each of the five subwaves further breaks down into a 3 wave pattern, labeled (a)(b)(c). This is a perfect example of a pattern that is in-line with the Elliott Wave model. We are watching for a break of the green line at 0.7025 before entering, this level acts as our confirmation. Our invalidation level to watch for this bullish interpretation is the red line at 0.6830

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2022年5月19日

评论

The invalidation level was reached, but that does not mean we have to abandon this outlook. The wave principle always has a contingency plan.

Overall, the price action from April onwards is very corrective in nature; note the choppy, overlapping waves. We are pivoting over to a WXY count, known as a "complex correction" in Elliott wave terms. We are watching a level of Fibonacci confluence between 0.6785 and 0.6800.

This is another great benefit of the wave principle: no matter what the market decides to do, you will never be caught off-guard.