Yesterday, we produced this chart and ventured a potential pathway based on the overall pattern ("WW") and specifically based on our experienced of high-probability reaction once price declines at the level where Point-1 was once defined.
As of this candle, the last 10 candles have defined a nodular module whose geometric center sits at the level of Point-1. As interesting as well (to those who love occult market geometry), price has settled at the anticipated 1-4 Line (see faint grey line), which is one of the major momental line that is likely to pace future price decline.
For the time being, CADJPY has converted into overtone, but an interim reaction is expected. If this scenario did occur, then look for 2-4 Line as a overhead resistance, especially at the 50% Fib mark of the recent decline from 5', since the internal pattern is a , and a pattern should ensue (if you are a predominant pattern trader).
For the esoteric market geometrist out there, the pattern offers a curious intellectual bridge between the conventional pattern trader and the esoteric market thinker, a category of delinquent traders which certainly defines 4xQuad.
Our outlook remains NEUTRAL with a expectation if and once price returns from its expected excursion. At that point, we will review the trade and convert the "Market Direction Prediction" mark accordingly.
David Alcindor | 4xQuad.com