Trading based on the Elliott Wave analysis is an exciting journey for any technical analyst from big guys to independent traders, this technique provides a way to organize the price action and understand every past cycle, once you do that part, forecasting the future is the easy thing.
Here we have on the 4-hour chart, the price action on the EUR/USD with the Elliott Wave analysis, was manually made, I spend hours everyday understanding all the cycles and properly applying the wave theory. The validation of the end of a wave is essential then the trade occurs, when the trader tries to jump in the market without validation can be catastrophic, and he will blame the Elliott Wave theory.
On this 4-hour chart, I’m looking to find the end of the wave “iv” black. I could capture part of the move down, and now it´s time to find the price reversal to go long. The best way to do it is by, finding a double bottom W pattern, it´s important that the leg down doesn’t invalidate the wave count, this will happen if the price falls below 1.1837, in that case, forget about the buy trade.
If only if the price fails to reach the 1.1837 and starts moving up, better if, above the green trend line, the entry area will be around 1.1920 / 1.1930. The conservative target is at the resistance 1.2046 if the price continues doing a bullish breakout, the next level to watch is the 1.2225.
I appreciate you are taking the time to read this article, and I want to share my professional view and help you become a better trader, don´t forget to use this information along with your knowledge to maximize your trades. Please share this post and have a great weekend.