FX:GBPCAD British Pound/Canadian Dollar
Long lasting corrections necessitate steep fans. Putting the beginning of the fan to the beginning of the wave 1, and aligning 1/1 at where the wave 2 ends, we see that the price was rejected by 1/2, which also shows the strongest weekly . Now we see a retest of the same level, but the price came from a very low level uninterruptedly, so for 1/2 to be broken, we have to see at least a little bit of correction.
Hi! Thanks for the names. I know those lines are so very similar to channel and support-resistance techniques, but I see them as something which depends on a completely different context. The technique will unfold as I gain more experience. But anyways channel and trendline based ideas must be inspiring for my enterprise : )