Elliott Wave Analysis: Triangle On USDCHF Points Higher
On the 4h chart of USDCHF we are looking at a triangle count, which now shows wave E) in progress, after recent three wave move to the upside was recognized as wave D). As such this new sharp reversal down may be wave A, the first leg of a three wave set-back in wave E). A probable reversal zone and support area for this wave E) could then be around the 61.8 Fibonacci ratio.
USDCHF, 4H
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.
A Basic triangle pattern:
http://www.ew-forecast.com/service
Find more: Contributing Authors