3-WAVE RULE DENIES BEARS ON CAD CHF



What looked like a promising bearish breakout has now turned Bullish with a sharp U-Turn that appears to have come out of thin air. However, based on our 3-Wave Rule of market trends, this pullback was always expected at some point in time.

Daily Chart below shows the strong Bull Candle that is now heading back to the broken Support barrier.


DAILY CHART




















The cause of this reversal was the trend on the 4 Hour Chart. Several waves of bearish setups had led to that Daily Bearish Signal that broke the Range Support. However, pullbacks such as these are always to be expected to take place, making a short position an unwise one.


4 HOUR CHART



















This technical aspect of trends can be seen across the Forex Market on all time frames. If there are several of these waves on a lower time frame, the immediate higher time frame will eventually pullback sharply.

In situations like these, we will either see a continuation of this rally that takes us back up to Resistance (False Consolidation Breakout Reversal)...


DAILY CHART




















....or a U-Turn after testing Support to resume breakout...


DAILY CHART



















In either case, the signal on the Daily Chart will have to be strong enough to justify entry such as the case with the GBP CAD trade (see Recent Trades).

Lets wait and see what unfolds.

In the meantime....





________________________________________


________________________________________

Duane Shepherd
(M.Sc. Economics, B.Sc. Management and Economics)
Currency Analyst/Trader
Contact: shepherdduane@gmail.com
Twitter: @WorldWide876
Facebook: DRFXTRADING
Website: www.drfxswingtrading.com

Comments

  1. Hello Everybody,

    I've attached a list of the most recommended FOREX brokers:
    1. Most Recommended Forex Broker
    2. eToro - $50 min. deposit.

    Here is a list of the best forex tools:
    1. ForexTrendy - Recommended Probability Software.
    2. EA Builder - Custom Indicators Autotrading.
    3. Fast FX Profit - Secret Forex Strategy.

    Hopefully these lists are helpful to you...

    ReplyDelete
  2. USA Forex Signal is one of the best forex trading signals and predicts provider website in the world. From the arrival, it is taking steps improved put-on, facility's and preserve rather than new rivals. USA Forex Signal has a largest and professional analyst team to generate in organization signals and forecast to subscribers. USA Forex Signal is providing supper setting support for subscribers to their highest amalgamation of trading. We give sprightly upon major currency EUR/USD, GBP/USD, USD/JPY, USD/CHF as soon as admittance price and exit signals in real time (1or 2/3 mature daily) along with daily & evening forecast. Only USA Forex Signal has faster forex signals relief for subscribers, It will be obsession log-in our website as a paid registered members. We provided our bolster as soon as the guarantee of profit +1200 pips per month. Our risk doling out formulas and philosophy are key to increasing get the bond of and avoid loss. It should be controlled emotion and utilize proper maintenance perspective of view.
    USA Forex Signal is serving signals more in addition to 200 countries in the world behind its good relatives. USA Forex Signal has the funds for signals via email, SMS, and website too.
    You Visit For Usa forex signals and reliable forex signals service by USA Forex Signal.

    ReplyDelete
  3. This comment has been removed by the author.

    ReplyDelete
  4. Word Wide Best Forex Signals Service Provider Company is hotforexsignal.com
    Hot Forex Signal Provide Best Forex Signals Service and Best Forex Trade Copier Service.
    100% Challenging Forex Signals Service Provider is Hot Forex Signal.
    Let Visit For
    free forex signals online with real time
    Or
    forex signals

    ReplyDelete

Post a Comment

Popular posts from this blog

STRATEGY NOW UP BY 23.78% WITH RECENT 2.00% USD CHF TRADE

NEW YEAR OFF TO A FLYING START - 231 PIPS & 194 PIPS ON NZD CHF TRADE

AGGRESSIVE 3.13% RETURN FROM THE AUD USD PENNANT CONSOLIDATION BREAKOUT