Potential End of Wave 5 Projection. The pair is in a typical 5 wave pattern formation with W1 being the impulse, W2 a shallow correction, W3 the longest impulse and W4 a deeper correction.
On the 1 hour chart, the pair has broken to the downside, corrected and then another breakout. There has been a pullback to retest the trendline area so should be a further move to the downside.
W2 shows a leading diagonal correction with a throw over wave. W4 correction is a running flat which sets up the End of Wave 5 Projection to the upside.
This pair has been falling since April. The price fall looks to have slowed/consolidated between June - July. Price seems to be now moving to the upside and I can see a possible big move to the upside. W1 looks to be complete and the correction of W2 is more of a shallow channel pullback.
W2 is a large running flat correction. As expected W4 is a smaller correction, it's a running triangle as W(b) exceeds the end of W3. Although W(e) has not hit the trend channel, the trade is still valid as W(e) may fall short in reality as opposed to theory. Also, after the end of W(C) of the running flat, there is a 5 waves impulse still to complete as W4 of...
Looks like the beginning of a new impulse to the upside. W1 has completed and W2 is an Expanded Flat correction with price confirming a further move to the upside.
End of Wave 5 Projection. As W2 was a steep pullback without the pricing closing above the beginning of W1, I would expect W4 to be a more complex pattern. W4 has turned out to be an ABC pattern that has pulled back without overlapping W1, so from my analysis the trade is valid to the downside.
Over extended 5th Wave. Substantially shot up through the End of Wave 5 Projection (from previous analysis).
Potential for an ABC pattern to follow. The B Wave as pulled back quite far but without going past the beginning of Wave A so trade is still valid.
Potential End of Wave 5 Projection. W1 is a strong impulse wave, W2 is a more complex 5 wave sideways pattern, W3 is the longest wave and strong impulse wave to the upside. As W2 was a complex pattern, I would expect W4 to be a simple ABC pattern correction, which it is. W4 also pulls back close to the end of W1 (without overlapping) which gives a good indication...
End of Wave 5 Projection. W2 was a short sharp correction then W4 was a slightly deeper and more drawn out ABC correction. W4 does overlap into W1 by 15.8%. My overlap limit is between 10-15% but this trade seems very compelling.
Potential End of Wave 5 Projection. W3 is 161.8 external retracement of W2. W2 is an ABC correction and W4 is a more complex pattern. W4 pulls back just within W1 and within the correction of W2. This is acceptable tolerance.
Potential for an End of Wave 5 Projection to the downside.
There has been a sharp rapid pullback of W2. W3 is a 2.618 retracement of W2 (longest wave) and W3 has pulled back right to the beginning of W2. As W2 was such a steep pull back, it is expected that W4 would be a less steep and more complex pattern. W4 is a less steep corrective wave and has pulled back...
Potential move to the upside to complete 5th wave. W2 was a 3 wave pullback. W4 is a 200 Fibonacci projection of W2 then W4 is also a deep pullback, almost to the end of W1.
Potential for a move to the upside. Possible Wave 5 completion in play. A deeper Wave 4 pull back may signal a move to the upside. 2 Target zones outlined.
