So let's break it down.
Wave 1 marked in green consists of nice and clear impulsive price action.
Wave 2 on the other hand is a spaghetti mess of corrective gumbo.
So I have made sense of this correction and broken it down into 5 waves A-B-C-D-E
We are now in the last phase of this correction and it looks like this is an ending diagonal Wave E.
I have noticed recently that E Waves when they are expanded like this tend to terminate close to the end of Wave 1, see my related USD\EURUSD ideas for an example of this.
It is kind of like a retest of support becoming resistance. It is very interesting indeed when you look at it this way.
When the price action doesn't work by jamming the correction into one wave then you need to re-evaluate the whole structure.
I will post a closer view of what we can expect moving into the end of this E wave shortly.
Please LIKE and FOLLOW to get notification of updates and future posts.
Wave 1 marked in green consists of nice and clear impulsive price action.
Wave 2 on the other hand is a spaghetti mess of corrective gumbo.
So I have made sense of this correction and broken it down into 5 waves A-B-C-D-E
We are now in the last phase of this correction and it looks like this is an ending diagonal Wave E.
I have noticed recently that E Waves when they are expanded like this tend to terminate close to the end of Wave 1, see my related USD\EURUSD ideas for an example of this.
It is kind of like a retest of support becoming resistance. It is very interesting indeed when you look at it this way.
When the price action doesn't work by jamming the correction into one wave then you need to re-evaluate the whole structure.
I will post a closer view of what we can expect moving into the end of this E wave shortly.
Please LIKE and FOLLOW to get notification of updates and future posts.
Previous AUDUSD idea.