USD/CAD: Wedge / Leading diagonal?
USD fell considerably today. People who took the smaller degree wedge / ending diagonal will have a blast riding the current down wave. I didn't spot it but I know that several others did: good job guys, this is as good as it gets!
Question on current TF is: do we have a wave 4 of a possible wedge / leading diagonal forming here?
If so, look for ending structures on smaller TF's around where PA hits the lower trendline of the wedge or possibly a little lower down... (see parallel channel). If a wave 4 then it is most likely a 3-wave structure.
New up wave from there could take us to the larger degree 0.382 (1.3312) downtrend retracement or one of the wave 1 extensions of the current up wave (likely target is the 1.618 at 1.3360). If it reverses back up and forms a 5-wave structure (common for wave 5 of leading diagonal, especially since wave 1 and 3 also seem to be 5-wave structures!).
Watch out: 5th wave can overshoot upper diagonal trendline but can also be truncated (fall short of target)... Seek confirmation and trade only what you see and not what you want to see...
Question on current TF is: do we have a wave 4 of a possible wedge / leading diagonal forming here?
If so, look for ending structures on smaller TF's around where PA hits the lower trendline of the wedge or possibly a little lower down... (see parallel channel). If a wave 4 then it is most likely a 3-wave structure.
New up wave from there could take us to the larger degree 0.382 (1.3312) downtrend retracement or one of the wave 1 extensions of the current up wave (likely target is the 1.618 at 1.3360). If it reverses back up and forms a 5-wave structure (common for wave 5 of leading diagonal, especially since wave 1 and 3 also seem to be 5-wave structures!).
Watch out: 5th wave can overshoot upper diagonal trendline but can also be truncated (fall short of target)... Seek confirmation and trade only what you see and not what you want to see...
Trade active:
Agressive long entry with great R/R just now based on this:
Very tight SL, if the channel holds great, if not I want to be out asap...
