EW Analysis: EURCAD With Bullish Setup Formation
Hello traders!
Today we will talk about EURCAD, its price action from technical point of view and wave structure from Elliott Wave perspective. We want to show you what are best setups for trading in real time.
Well, we will focus on a lower time frame, a 4h chart, where we can see nice, clean and impulsive five-wave rise from the lows, which in Elliott Wave theory suggest the bottom, at least a temporary one.
Five-wave cycle has to be labeled with the first higher degree leg A/1 and we know that after every five waves, a three-wave a-b-c corrective pullback follows in wave B/2 which is usually followed by a third leg C or 3.
So, it doesn't matter if we will see a bullish reversal with 1-2-3-4-5 waves up or just a corrective A-B-C movement. In both cases we can expect at least one more push to the upside.
Current three-wave a-b-c corrective decline within wave B/2 looks to be unfinished, but keep an eye on golden 61,8% Fibonacci retracement, where we also see equality measurement of waves a=c, so ideal support would be in 1.4950 - 1.4900 zone. However, it's already at the former wave "iv" support, so in case of an earlier jump up above 1.5100 level, then bulls within wave C/3 would be already in play.
Of course, we may see even even bigger, deeper and more complex correction in B/2, but have in mind that count would be invalited only below 1.4725 previous lows level.
Traders, we hope you liked that article.
Be humble and trade smart!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Today we will talk about EURCAD, its price action from technical point of view and wave structure from Elliott Wave perspective. We want to show you what are best setups for trading in real time.
Well, we will focus on a lower time frame, a 4h chart, where we can see nice, clean and impulsive five-wave rise from the lows, which in Elliott Wave theory suggest the bottom, at least a temporary one.
Five-wave cycle has to be labeled with the first higher degree leg A/1 and we know that after every five waves, a three-wave a-b-c corrective pullback follows in wave B/2 which is usually followed by a third leg C or 3.
So, it doesn't matter if we will see a bullish reversal with 1-2-3-4-5 waves up or just a corrective A-B-C movement. In both cases we can expect at least one more push to the upside.
Current three-wave a-b-c corrective decline within wave B/2 looks to be unfinished, but keep an eye on golden 61,8% Fibonacci retracement, where we also see equality measurement of waves a=c, so ideal support would be in 1.4950 - 1.4900 zone. However, it's already at the former wave "iv" support, so in case of an earlier jump up above 1.5100 level, then bulls within wave C/3 would be already in play.
Of course, we may see even even bigger, deeper and more complex correction in B/2, but have in mind that count would be invalited only below 1.4725 previous lows level.
Traders, we hope you liked that article.
Be humble and trade smart!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
