USD/CHF: Ending Diagonal Points Lower
Gregor Horvat | Oct 12, 2017 08:41AM ET
Good day traders! Today let's focus on USD/CHF and its 4h Elliott wave pattern.
USD/CHF might have complete a higher degree correction within wave 4) this week if we consider a nice bearish reversal in the last few sessions down from 0.9830 where we were looking for a top of an ending diagonal. Notice that pair is now also well below the red diagonal trendline and retesting 0.9707 mark; a daily close below that price will confirm that bearish trend has resumed, therefore aggressive decline may be seen next week.
An ending diagonal is a motive wave that occurs primarily in the wave 5 position. It can also appear in wave C as part of a A-B-C correction. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement. Ending diagonals consist out of five sub-waves, with each one having three minor legs. They also take on a shape within two converging trend lines(as seen on the chart). One part that is crucial for the ending diagonal pattern is that wave one and four overlap.
Here is also an example of the ending diagonal pattern:
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.