ASX: CAN 22_Jan_2020_Elliot Wave Theory_Technical Analysis_Trend

ASX: CAN $1.350 -12.34%
22nd January 2020

Elliot Wave Theory (EWT)

Elliott Wave is fractal and the underlying pattern remains constant. The 5 + 3 waves define a complete cycle. They can form different patterns such as ending diagonals, expanded flats, zigzag corrections and triangles. Fifteen different degrees of waves can be identified with each of the 5 smart drawing tools, allowing users to visually identify different degrees of waves on a chart. The key to trading Elliott waves successfully is counting them correctly for which there are rules and guidelines.

Current Analytics

_4 impulsive uptrend waves have been completed
_Wave 4 (iiii) of EWT has retraced no more than 50% from the base of wave 2 (ii)
_The retrace or correction correlated really well with the base of the existing uptrend
_The retrace also bottomed at the 20 SMA which is another positive correlation
_The stochastic and RSI have reset and are expected to cross to the upside shortly

+Which will complete the inner wave 5 (iiiii) of the greater first wave of the EWT
_We then will be looking at a greater ABC correction

Limitlesss
First executed order was at $0.64 and sold at $1.57
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Date: 03rd January - 22nd January 2020