On the chart you can see 5-wave impulse, after that ABC correction, so now we have good entry point: low risk with tight stop, because if price go down my idea will be invalidated. And big potential profit!
Divergence on MACD between a and c waves.
Hello TV! I have sell setup for EURCAD based on Elliott wave theory. I've found 5-wave impulse (on the chart), after that we can see correction, finished on 78,6% Fibo retracement. Now I'm waiting the next impulse down. Stop placed several pips above of Wave1.
So we have very perspective R/R trade setup:
Idea based on EW count.
Now we've finished wave 5 and ready for reversal. MACD can help in wave counting. Details on the chart.
Divergence on MACD between wave 3 and 5 - it's very typically for such case.
You can see on my chart wave 1, now it should be correction. It looks like it's making ABC. Now we are in point B, so we can try trade C-wave.
Divergence on MACD
Risk is very low, as always!
If you have any questions or ideas regarding my view - you are welcome!
I've found 1st wave, and ABC correction, C is now under A. Stop is below of 1st wave, which is not supposed to be threatened, that is what the Wave Principle dictates. Otherwise my EW count and idea incorrect.