UPDATE #2: QUICK ANALYSIS: USDJPY: Scenario #2: ABC 5-3-5 ZigZag

FX:USDJPY   U.S. Dollar / Japanese Yen
614 1 13
I'm updating this Scenario #2 with the latest price action. And just to be clear, this is the scenario that I favor. Why? This correction in a wave 4 is necessarily complex and long (in terms of time) due the extreme and quick nature of the previous wave 3 impulse wave. Wave 3 was VERY POWERFUL and only took a couple of days time to complete. Therefore, the nature of price action will be to slowy retrace that extreme wave. You see this all the time. Whenever there is a "falling knife" type drop (or rise), normally (but NOT ALWAYS!) you will see a slow (and complex) correction occur. This is what is happening now.

In this Scenario #2, I have been saying that it is unfolding in a very complex manner. Most likely in an ABC Zigzag-type corrective pattern. Here is the chart from my previous post on this:

The difference now and the reason for this update is to show you what I now see as a ABC 5-Triangle-5 correction where wave (B) is a triangle pattern . Within any corrective wave, the wave (B) itself is also a corrective pattern and therefore can also have a tendency to unfold in a complex way itself. That's what we are seeing here. Wave (B) is unfolding in a complex triangle pattern .

Furthermore, within this triangle itself, prices are making many complex moves. This is why there is so much confusion among traders as to what is happening. With the wave (B) triangle, there are triangles. And right now, I believe prices are in a contracting triangle within a smaller wave (b) of the C leg of the larger Wave (B) triangle. When this smaller contracting triangle completes, we will have a wave (c) down into the lower TL of the larger Wave (B) triangle and this will complete the c leg of that triangle.

There are 2 patterns that could be marking the end of that c leg of the wave (B) triangle. One is a bullish cypher and the other is a bullish Gartley . They both would complete RIGHT AT the lower TL and they both complete right on top of each other. How's that for confluence?

4HR CHART - Overview Of Unfolding Complex Wave 4 Correction
Here's what all this look like with updated price action and my adjusted wave counts on a larger time frame....

I am going to wait until this smaller wave (b) triangle completes before I do anything. It's completion would serve to further confirm what I am seeing is happening. When prices do complete the triangle, I will be looking at price action to go SHORT to get the decline to the bottom TL of the wave (B) triangle. And there, I will look to close this SHORT position and look to go LONG.
SPECIAL Commodities $39.99/mo http://bit.ly/2AZWhx4
List of my ACTIVE Trades: http://bit.ly/2JkoaR3active
Sign up to mailing list: http://bit.ly/2iNieEY
Facebook Group: https://www.facebook.com/efxselect
Twitter: @andrewefxselect
Website: efxselect.c
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!

If you like my posts and find them helpful, please take a second to hit that LIKE button and follow me so I will know my posts are useful to you. Doing so will encourage me to post more! As always, all constructive comments are welcome. Agree or disagree.
+1 Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out