If there is one Elliott wave sequence of patterns to get excited about trading, it’s a triangle followed by an ending diagonal (W4 and W5 or B and C), not just because it give us a chance to trade wave3 and 5 of the diagonal safely, but also because this sequence usually considered a strong indication of a new trend in the opposite direction is most likely at the end of wave 5 of the diagonal, usually, It’s where a majority of traders, who were on one side of the market, decide to reverse their positions.
The pair completed a triangle (wave iv (blue)) on the 30th. Of Aug. @ 0.65222, 15 pips shy of 32.8% of wave iii. This was followed by a zigzag ending slightly beyond the extreme of wave iii plotting a new lower low before it retraced last week to test the mid 0.64000
The 2nd zigzag after a triangle is known as the “point of structure confirmation”
Now it’s IMPORTANT to remember that trading EW means trading possibilities, this is one legitimate scenario among others.
The pair completed a triangle (wave iv (blue)) on the 30th. Of Aug. @ 0.65222, 15 pips shy of 32.8% of wave iii. This was followed by a zigzag ending slightly beyond the extreme of wave iii plotting a new lower low before it retraced last week to test the mid 0.64000
The 2nd zigzag after a triangle is known as the “point of structure confirmation”
Now it’s IMPORTANT to remember that trading EW means trading possibilities, this is one legitimate scenario among others.