***USDCAD BULLISH Wolfe Wave set up***
I am forecasting a strong rally to 1.2900 handle based on the Wolfe Wave pattern. If Crude Oil drops then this should weaken CAD and give this the rally it needs to break the strong Weekly Resistance above WW4.
What is the Wolfe Wave? (according to Forex Factory)
Simply put, the Wolfe Wave is a natural rhythm that exists in all
markets. It is made up of waves of supply and demand that form
their own equilibrium. It was not "invented" by me, but
discovered. The key to its accuracy is in properly identifying the 1,
2, 3, 4 & 5 points. These are what give it its proper balance of
equilibrium. It is very important to identify the dominant Wave. It
is somewhat like recognizing those 3-D pictures. After a while a
smile comes to your face and you say: "WOW, I see it."
Rules for Bullish WolfeWave Structure
Please note the odd sequence in counting, as you will see, it is necessary
for the inductive analysis. By starting with a top we are assured of
beginning our count on a new wave. (The reverse would apply for a
bearish wave.)
The 2 point is a top.
The 3 point is the bottom of the first
decline.
The 1 point is the bottom prior to point
2 (top), that 3 has surpassed.
The 4 point is the top of the rally after
point 3.
The 5 point is the bottom after point 4
and is likely to exceed the extended
trend line of 1 to 3. This is the entry point for a ride to the EPA line (1 to 4).
Estimated Price at Arrival (EPA) is trend line of 1 to 4 at apex of extended
trend line of 1 to 3 and extended trend line of 2 to 4.
Estimated Time of Arrival (ETA) is apex of extended trend line of 1 to 3 and
2 to 4.
I break of the top TL should be a conservative entry for long if you are not long already!
IF AND WHEN A break below WW.5 would be a great short!!
R.
What is the Wolfe Wave? (according to Forex Factory)
Simply put, the Wolfe Wave is a natural rhythm that exists in all
markets. It is made up of waves of supply and demand that form
their own equilibrium. It was not "invented" by me, but
discovered. The key to its accuracy is in properly identifying the 1,
2, 3, 4 & 5 points. These are what give it its proper balance of
equilibrium. It is very important to identify the dominant Wave. It
is somewhat like recognizing those 3-D pictures. After a while a
smile comes to your face and you say: "WOW, I see it."
Rules for Bullish WolfeWave Structure
Please note the odd sequence in counting, as you will see, it is necessary
for the inductive analysis. By starting with a top we are assured of
beginning our count on a new wave. (The reverse would apply for a
bearish wave.)
The 2 point is a top.
The 3 point is the bottom of the first
decline.
The 1 point is the bottom prior to point
2 (top), that 3 has surpassed.
The 4 point is the top of the rally after
point 3.
The 5 point is the bottom after point 4
and is likely to exceed the extended
trend line of 1 to 3. This is the entry point for a ride to the EPA line (1 to 4).
Estimated Price at Arrival (EPA) is trend line of 1 to 4 at apex of extended
trend line of 1 to 3 and extended trend line of 2 to 4.
Estimated Time of Arrival (ETA) is apex of extended trend line of 1 to 3 and
2 to 4.
I break of the top TL should be a conservative entry for long if you are not long already!
IF AND WHEN A break below WW.5 would be a great short!!
R.
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