EURNOK is currently giving us a masterclass on Elliott Wave.
We have the perfect impulse schematic, which follows every rule of Elliott Wave Theory.
IMPULSE ELLIOTT WAVE SCHEMATIC Wave 1 = 5 waves (Impulse) Wave 2 = 3 waves (Correction) Wave 3 = 5 waves (Impulse) Wave 4 = 3 waves (Correction) Wave 5 = 5 waves (Impulse OR Correction in the form of a diagonal)
We can see that wave 2 was a simple correction and when that happens, it is often expected that wave 4 will be a complex correction. In this scenario, we have wave 4 appearing as a complex Flat correction (3-3-5).
We are currently in the wave C of the flat correction = 5 subwaves. We are seeing subwave 4 now and expecting one final subwave lower to complete wave C.
SHORT Trade Idea: - Watch for subwave 4 to breakdown and enter with stops above subwave 4 - It's anticipated that we stay below 11.577 so having stops above that level will be fine for a risk entry - Target: 11 (5000pips)
LONG Trade Idea: - Once we reach the buy zone, watch for reversal signs such as BOS or trendline break - Enter with stops below the lows once reversal signs appear - Targets: 11.5 (5,500pips), 12 (10,000pips), 12.5 (15,000pips), 12.8 (18,000pips)
We do hope you learnt a thing or two from this post. Let us know your thoughts below!