Hello, Captains!
I am going to make this as short and sweet as I possibly can. This blog post is all about the Elliott Wave Theory.
I want to talk about how USDCHF has left an H&S Pattern starting at wave 1, which we have seen wave 2 (the right shoulder), and explain a projection of the bullish trend. Sound good?
Humans and nature cause cycles as both are constantly changing, which causes our moods and reactions to shift depending on external factors.
We have been in a downward trend of the US Dollar against the Swiss Franc since March 2020.
Ask yourself, what is the bigger picture? What is the reason for this trend in the price? Is it the result of a single event?
It is not uncommon for a trend to continue as long as there is money to be made. It is often the case that trends will continue until every last speculator has been squeezed out.
As you may know, institutions are shorting the USD, and everyone is making money on it, while retail traders are looking to play the next move.
Note: The next move usually occurs when a break of the trend line is made. We haven't seen that yet, but I know many people are waiting for it to happen.
The theory suggests that markets move at cycles, and prices will eventually go back up.
We have seen the start of one cycle with an inverted head and shoulders pattern, which has given us a wave 1. There is also wave 2 and a projection for a bullish trend.
As you can see, there is an actual pattern in play here. It's not random.
Now it is time to see if this bullish trend will happen as predicted or if we are just part of yet another downward cycle in price!
Leave a comment if you have any questions, and let me know what you think about my research! I do this for free because I enjoy sharing my findings and hope to spark people's interest in learning more about the markets or who are just curious.
I am going to make this as short and sweet as I possibly can. This blog post is all about the Elliott Wave Theory.
I want to talk about how USDCHF has left an H&S Pattern starting at wave 1, which we have seen wave 2 (the right shoulder), and explain a projection of the bullish trend. Sound good?
Humans and nature cause cycles as both are constantly changing, which causes our moods and reactions to shift depending on external factors.
We have been in a downward trend of the US Dollar against the Swiss Franc since March 2020.
Ask yourself, what is the bigger picture? What is the reason for this trend in the price? Is it the result of a single event?
It is not uncommon for a trend to continue as long as there is money to be made. It is often the case that trends will continue until every last speculator has been squeezed out.
As you may know, institutions are shorting the USD, and everyone is making money on it, while retail traders are looking to play the next move.
Note: The next move usually occurs when a break of the trend line is made. We haven't seen that yet, but I know many people are waiting for it to happen.
The theory suggests that markets move at cycles, and prices will eventually go back up.
We have seen the start of one cycle with an inverted head and shoulders pattern, which has given us a wave 1. There is also wave 2 and a projection for a bullish trend.
As you can see, there is an actual pattern in play here. It's not random.
Now it is time to see if this bullish trend will happen as predicted or if we are just part of yet another downward cycle in price!
Leave a comment if you have any questions, and let me know what you think about my research! I do this for free because I enjoy sharing my findings and hope to spark people's interest in learning more about the markets or who are just curious.