CADCHF - The Perfect Correction 🔥

CADCHF is currently showing us the perfect correction. In Elliot wave theory, this correction is called a Flat correction made up of 3-3-5.
3 waves - WXY (Wave A)
3 Waves - WXY (Wave B)
5 Waves - 12345 (Wave C - we are currently in Wave C)

After the massive impulse in February 2021, price has been stuck in a parallel correction. Within that channel, we can see a number of corrective moves that could have been caught using elliot wave theory. The bigger channel is supporting the ABC corrective move.

Wave A - 3 waves. The price action to take us from the top of the channel to the bottom is the move marked WXY in red. Within that move, we can see that we had 2 minor ABC moves.

Wave B - 3 waves. was similar where we had an WXY move and within that, had a minor ABC move.

Wave C - 5 waves. We are currently in the bigger wave C now where it has 5 waves to the move with wave 3 being the biggest. We are currently in wave 1 of the bigger Wave C)

Trade Idea:
Watch for wave 2 - this will be a corrective move. Once you have identified wave 2, you can catch the big wave 3!

If you enjoyed this little breakdown, leave a like and comment what you think!

As always, trade safe.