AUD/JPY: Harmonics, structure and EW (test) combo.
Trying to learn EW and integrating it within my analysis...
The structure here looks very clean and harmonic, almost too good to be true...
We could be forming a 3 drives pattern and a triple zigzag pattern simultaniously.
A very nice short opportunity with excellent R/R could be the result!
Wave count may be wrong but since all moves roughly divide in 3 waves on this timeframe, the whole structure within this down channel seems to be corrective of nature. On smaller timeframes the down moves might look more like 5 wave structures, but I haven't looked at that since it really doesn't matter that much, it doesn't change the principle imo.
As long as the EW rules are not broken, this whole developing structure could imo also be defined as a 5-wave impulse wave. I believe both approaches, corrective and impulsive, might be valid at this stage of development, but I'm not entirely sure...
The whole move down until now has behaved quite harmonically, the first AB=CD has a nice 50% ret. and 200% ext. (ideal combo), we'll just have to wait-and-see if the next moves develop in the same way, ultimately forming the possible bullish 3 drives pattern right at an important structure level in the neigbourhood of the 75.00 round level!
A nice long trade might ultimately be the end result, but that's still far off, for all we know it might never even get close to completion...
I am entering the short sell limit orders as in the chart!
The structure here looks very clean and harmonic, almost too good to be true...
We could be forming a 3 drives pattern and a triple zigzag pattern simultaniously.
A very nice short opportunity with excellent R/R could be the result!
Wave count may be wrong but since all moves roughly divide in 3 waves on this timeframe, the whole structure within this down channel seems to be corrective of nature. On smaller timeframes the down moves might look more like 5 wave structures, but I haven't looked at that since it really doesn't matter that much, it doesn't change the principle imo.
As long as the EW rules are not broken, this whole developing structure could imo also be defined as a 5-wave impulse wave. I believe both approaches, corrective and impulsive, might be valid at this stage of development, but I'm not entirely sure...
The whole move down until now has behaved quite harmonically, the first AB=CD has a nice 50% ret. and 200% ext. (ideal combo), we'll just have to wait-and-see if the next moves develop in the same way, ultimately forming the possible bullish 3 drives pattern right at an important structure level in the neigbourhood of the 75.00 round level!
A nice long trade might ultimately be the end result, but that's still far off, for all we know it might never even get close to completion...
I am entering the short sell limit orders as in the chart!