How to Trade Ending Diagonal: EURUSDOne of my favorite EW patterns: Ending Diagonal
It usually appears in wave C or 5, we have wave C
It consists of five waves and each of them are three waves
All looks good as wave 5 is over wave 3 and Ending diagonal might be completed
as EWO oscillator already shows Bearish Divergence between wave 3 and 5
This educational post to show trade setup on this pattern
The bottom of wave b in wave 5 is a breakdown trigger (blue) as it means wave 5 is over
Confirmation is on breakdown of wave 4 (orange)
Target is at the start of the Ending Diagonal (green)
Bonus track:
One could consider sell on 61.8% Fib retracement as we see the first impulse down
and now we watch this two-legged pullback.