Hello, Elliott Waves is not the holy grial, but its useful giving us extra information about the market structure. After having the context or framework we can pinpoint our entry using another trading system.
According to this analysis i think the correction for primary wave 4 (blue) is not finished yet.
This idea is based on the EW guideline of alternation, if wave 2 is simple and sharp we can expect wave 4 to be sideways or complex
This scenario already happened on EURUSD looking at price history
Wave 2 (green) is simple......... then wave 4 (green) is sideways (triangle)
Wave 2(blue) is simple (zigzag) .... then we can expect wave 4(blue) to be a sideways correction.
Based on this rationale im discarding the possibility of a simple zigzag correction for wave 4 (blue), so i conclude wave 4(blue) is not finished yet.
Right now this correction is developing as a 3-3 structure (ABC-ABC red). Ideally we can expect a triangle i drawn on the chart, but it can be any sideways correction (flat, double three, triple three)
Its highly recommended not to trade the wave 4 because usually it is a trap for bulls/bears and the market can offer vey choppy price action.
Right now im short trading the last c wave (red), after that i will close my position and better stay aside unless i see a clear structure waiting for the end of wave 4 blue. A better idea would be to trade the final wave 5(blue)
I know many people loves to trade the EURUSD but not to open a trade is also a position.
Best regards.
*****************DISCLAMER********************************************************************
This is just and idea, not a recommendation to buy or sell.
Always do your own analysis before opening a trade.
Managing is 60% of a trade, anytime I may decide not to open, close or even stop and reverse a trade depending on price action.
Any respectful and constructive ideas are welcome.
We all are here to learn sharing ideas, have fun and improve our performance.
According to this analysis i think the correction for primary wave 4 (blue) is not finished yet.
This idea is based on the EW guideline of alternation, if wave 2 is simple and sharp we can expect wave 4 to be sideways or complex
This scenario already happened on EURUSD looking at price history
Wave 2 (green) is simple......... then wave 4 (green) is sideways (triangle)
Wave 2(blue) is simple (zigzag) .... then we can expect wave 4(blue) to be a sideways correction.
Based on this rationale im discarding the possibility of a simple zigzag correction for wave 4 (blue), so i conclude wave 4(blue) is not finished yet.
Right now this correction is developing as a 3-3 structure (ABC-ABC red). Ideally we can expect a triangle i drawn on the chart, but it can be any sideways correction (flat, double three, triple three)
Its highly recommended not to trade the wave 4 because usually it is a trap for bulls/bears and the market can offer vey choppy price action.
Right now im short trading the last c wave (red), after that i will close my position and better stay aside unless i see a clear structure waiting for the end of wave 4 blue. A better idea would be to trade the final wave 5(blue)
I know many people loves to trade the EURUSD but not to open a trade is also a position.
Best regards.
*****************DISCLAMER********************************************************************
This is just and idea, not a recommendation to buy or sell.
Always do your own analysis before opening a trade.
Managing is 60% of a trade, anytime I may decide not to open, close or even stop and reverse a trade depending on price action.
Any respectful and constructive ideas are welcome.
We all are here to learn sharing ideas, have fun and improve our performance.