7pasos

7pasos

Lets finish this week with a nice classical trade pattern, the flag: This pattern represent continuation of a trend therefore we need be all ready in a trend to keep it going. Think this is the case in this setup because we are in the second impulse into the up side movement. Actually this is more interesting because the flag is formed at the point where the...

7pasos

When you count a new stock is more risky because the lack of context, here I can find some patterns, some what clear, but what catched my attention is the preference for the 74.6% fibo level. This could be a common level in deep pullbacks like in wave 2 but here appear in multiple situations: Wave c) of the first downside movement extend 76.4 of wave a) The...

7pasos

Continuing with the elliott wave count of what had been an interesting fifth wave we see that the after the strong and deep pullback of the diagonal wave 1) appeared a new wave down with great momentum which makes it a very good candidate to be at least part of wave 3) (but for now will keep with the idea of this as a simple third) and afther all this we see now a...

7pasos

Here are a simple example of what I like to see when a head and shoulders concern: A clear and even better a strong trend, that suddenly decelerate when forming the head and shoulders A clear lost of momentum (look at the MACD divergence A clear pattern formation with a healty risk reward ratio (this time over 1 to 1.5 When you trade pairs do not have volume...

7pasos

This is the same theory expressed at the chart but with a correction at the downside movement because in the other chart appears as the shortest wave the iii of c)) of 2 and that is an error. Here we propose 2 possible counts for this correction from 1: an wxy count or an ending diagonal (wich i prefer because the strong reaction to the upside followin the end to...

7pasos

Actually we are in the path of a strong rally that came after a smal retracement, this rise questions about the impulsive nature of this movement because ussualy wave ii is more deep, what lead us to think this could be an x wave which should end at the 1:1 relation a with c at 13.60 but if the upside presure increase could extend even longer but if it bounce back...

7pasos

Some times we can have doubts when counting the elliott waves, where a retracement had been part of one structure or another that is extendig. One way to shed some light on this issue could be done by the comparing the size in price or time for the retracement. In this chart we can find that the wave ii had been some what long in time and short in price if we...

7pasos

We can argue that this fall is an impulse or a simple zigzag, but what we must be agree is that this have more to fall because: Even in the case of a zigzag, the most near relation with the A wave (assuming is just a zigzag) is the 161.8% of A and therefore the 1167 is the MINIMUM fibo target at this point. In the case of an impulse this target becomes the...

7pasos

One way that i like to analyze a mess of chart as we do have now in the daily GBPUSD is try to separate what I can easily identify, as starting point. In this chart using the pattern tool I have tryed to do what my mind do when look a chart under elliott eyes: First try to find the most simple and precise pattern (because of it's set of rules) that elliott have,...

7pasos

Today i want to share a simple chart, a cuple of hammers at support zone, and this could be found as well in the USDJPY as in the EURJPY. I'll take the USDJPY because seems better the risk reward ratio. The idea is to take at least the 98.89 target because a hammer is a good early reversal under the japanese candlesticks but, find 2 hammers in the same zone is a...

7pasos

Few times we can find a triangle who can from the technicall stand point, break as well to the upside as to the downside, with a so good risk reward ratio even to the long or short position. This have been madurating since las thursday 13, and now seems probable to make the break out. The idea is to buy at first clear close outside the triangle (and better in...

7pasos

Analysis elliott raising the possibility that the fall of the Nikkei could be 1) next to complete, and after this, if indeed we are on impulse, should make new highs. Alternatively if the price was doing just a abc correction after a decline that fails to break the maximum price shall resume the fall and although not at a rate as fast as this sale, whether I...

7pasos

For weeks I've been reading that the Nikkei, which has shown an explosive increase in its volatility the last few weeks, is due precisely the fears of U.S. Federal Reserve taping to reduce the bund purchases that are now of 85 billions per month . While it is true that a reduction in bond purchases would tend to shoot upward the bond rates also is true that this...

7pasos

As we can see in this chart after the first strong down side movement since the 4.64 the price have been stocked with what seems to be a standard flat, and where the b wave is near to it's end (unless its 5th wave extends) Therefore (and confirmed by the base channel as far as now) is logical to expect that after a new visit to the lows near the end of wave 1/A...

7pasos

Have you ever wonder why some times an elliottist place a question mark "?" after some labels and some times don't. And even more, some times after a high degree label and some times just after some "same" degree? Well today we will reveal the mistery behind this. To start let me tell you that the question mark means that the count have yet not conclusive...

7pasos

Here we have a simple swing trade: In a down trend who is accelerating (observe the more acutte angle for the last trend line) With a serie of fibo swings accelerating as well (observe the lesser retracement in the last fibo swings) Found an end of retracement confirmed by a gartley ended (1 to 2 relation upside) in conjunction with 38.2% retracement And a break...

7pasos

It's clear the fact that every trader have almost the same chart, do not mean that will decide exactly the same way, where some can view a chance to an upside movement others with the same very chart will see a down side trade. I think that one of the best examples for this not so rare occurence exist today in this EURUSD chart. The most big picture shows what...

7pasos

2 days ago I published a elliott wave count that shows that the AUDUSD won't stop at 95 and the chances were more in favor to a decline to 93. The strong bounce from 0.9436, I think imply the posibility that the price is extending as well the 5th wave (in this case wave v) ), therefore we see the movement to the actual low more probable as wave i of v) and not the...