After a pain free drop from yesterday's bearish Gartley Formation the EURAUD is now putting in a potential Bullish Cypher formation. HOWEVER it's extremely important that you draw this one out on your own charts. On my charts the pattern formation is INVALID due to the "B" leg, but many of my Live Room members had it valid on their charts which is why i wanted to share it with you.
It's important to always Trade What YOU See. Price quotes in the Forex market vary from data provider to data provider, which is another reason why you should NEVER blindly follow another trader and trust what you see on your chart!
Hello, buddy. We discussed this situation in your euraud double tops/bottoms post. I told you if we go down in 3-wave manner and then go up in 3-wave manner then we will most likely have a decline from your decision point. That exactly what happened and we had an opportunity to grab the gartley. This type of correction is known as flat in EW analysis and its structure is 3-3-5. So, now I am expecting a 5-wave decline before we resume the larger uptrend. As we are in the 1st wave to the upside after the Even Larger Downtrend the corrections typically go to 50-618.
So what I expect:
a 5-wave decline to the downside touching or even breaking the X-point of the Cypher and then an impulse to the upside that will break those double tops.
Alternative:
If we don't move in an impulse manner and break the double top but in a three wave manner instead this will mean that we will most likely have a compound correction. I will expect another 3-3-5 flat or a-b-c-d-e triangle. Thus we will move sideways within that first uptrend impulse range.
What ruins my analysis:
If price breaks the base of the uptrend impulse and Larger Downtrend Resumes.
So, to sum up the above said:
We either move to the upside, or we move sideways or we move to the downside. Ahahahahahaha
Have a nice day.
@Alexander_Nikitin, A bunch of patterns ahead if sideways scenario comes into play:
Akil_Stokes
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@Alexander_Nikitin, Sideways movement may be junk to some, it may mean the potential for pattern opportunities for others. Thanks for the chart.
Akil_Stokes
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@Alexander_Nikitin, Thanks for sharing your thoughts, I like elliot wave principles as we know they exisit in price action, I've just never been a fan of wave counting personally. Wishing you a great day as well!!
FxStreamer
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Im long from 2-3 days ago . had a profit of 100 pips now break even but will keep it cause i think its a bullish trend. Looking for bigger profits. 1 to 4 risk rewards. but wont recommend to anyone unless they can properly read the market behavior .
So what I expect:
a 5-wave decline to the downside touching or even breaking the X-point of the Cypher and then an impulse to the upside that will break those double tops.
Alternative:
If we don't move in an impulse manner and break the double top but in a three wave manner instead this will mean that we will most likely have a compound correction. I will expect another 3-3-5 flat or a-b-c-d-e triangle. Thus we will move sideways within that first uptrend impulse range.
What ruins my analysis:
If price breaks the base of the uptrend impulse and Larger Downtrend Resumes.
So, to sum up the above said:
We either move to the upside, or we move sideways or we move to the downside. Ahahahahahaha
Have a nice day.