4 hour time frame
Let look at an Aussie/cad dollar pair, we can see that we had 5 waves upward from 0.95543 till 0.99323. Bulls were in control all the time there will little bit of bears from wave 2 and wave 4. This is a perfect motive wave that is impulsive. We can see wave 3 was full of energy, the bulls really pushed the price up and went very fast remember I mentioned that if you trade wave 3 you get paid very quick. Then from 0.99323 the bears kick in and corrected the price back to the finish of wave A at 0.97364 and wave B started which is where we are currently. I’m expecting it to reach at least 61.8 % of wave A. Then wave C will start till around 100% to 161.8% Fibonacci extension of wave A. This look like simple zig-zag so wave c should have 5 sub waves, they should be plenty of trading opportunities. Once wave C start we are selling all the way in the right places.
Looking at long-term we see that we are in correction wave which could be wave 2 or B after wave c has finished we should see should see the start of wave 3 or wave c on the bigger time frame. Looking at the chart above we can see that wave c could go up to 1.02127. Please note if the price break below the start of wave 1 in wave A, the bullish analysis will be invalidated. I will post a new analysis but right now it look like the current analysis will hold. Trade with care guys, remember markets can be unpredictable. Go through my money management course to refresh your mind on good money management tips. If you liked this analysis please share this post.