I am reading a book on Elliot Wave and am trying my hand at it.
So we have the formation of a wave 1 that I drew a Fibonacci retracement on. The wave 1 has ended and appears to be in a triangle corrective formation that is reaching a point. By my analysis the wave should then break down into a 3 wave that is of more or less the same length as wave 1. The red line shows the length on wave one and is used to predict the end result of wave 3. Given the amount of pips this is expected to move this is probably more of a swing trade than a day trade.
This trade is also in line with the fundamentals. JPY has been strong lately because of the geopolitical events that have been occurring lately. N. Korea and Donald Trump have been throwing Insults at each other all this has done is make people antsy and strengthen JPY. AUD has been weak lately precisely because there is a risk-off sentiment.
We'll see what happens.....
So we have the formation of a wave 1 that I drew a Fibonacci retracement on. The wave 1 has ended and appears to be in a triangle corrective formation that is reaching a point. By my analysis the wave should then break down into a 3 wave that is of more or less the same length as wave 1. The red line shows the length on wave one and is used to predict the end result of wave 3. Given the amount of pips this is expected to move this is probably more of a swing trade than a day trade.
This trade is also in line with the fundamentals. JPY has been strong lately because of the geopolitical events that have been occurring lately. N. Korea and Donald Trump have been throwing Insults at each other all this has done is make people antsy and strengthen JPY. AUD has been weak lately precisely because there is a risk-off sentiment.
We'll see what happens.....
Trade closed manually:
I got the direction right. I was a little wrong about the triangle. It retraced a bit more than I had expected. But the move down was about the same length as that red line. So there might be to it.