Wave analysis of the Forex market or Elliott wave principle is the type of technical analysis considering price to be similar to ebbs and flows. All price movements on the Forex market are subject to two types of waves:
- Impulse, or motive, phase – the waves which move price up or down (shown by digits)
- Correction phase: waves that respond to impulse (shown by letters).
An impulse drop of the pair is a most likely option, which is associated with formation of the extension in the wave iii. In this regard, we can sell carefully with the Stop Loss set at the local High. As the pair will drop, decrease, on update of Low we can open additional Sell trades with pulling
It is possible that the price will rebound from the Low again, thus continuing to develop a zigzag correction. So we don't need to hurry up with the opening Sell trades. It is better to wait for the completion of the wave [ii] of the downward momentum, and only then look for opportunities to enter i
So, I remind you that the pair appears to have completed correction in the form of a Double Zigzag, and the wave v has probably taken the final diagonal triangle shape. Thus, the mentioned model anticipates a fast swift U-turn and an abrupt impulse upward movement of the price, which, however, is no