Elliott Wave Analysis: USD/CHF Trading Within A Triangle
Gregor Horvat | Aug 18, 2016 05:02AM ET
Triangles are made by five waves where each leg is made by three sub-waves, so we see current turn down on USD/CHF as a temporary move; it can be wave C) that may find support this week around 0.9550 area, after a completed five wave fall in sub-wave C of C). We believe then market will quickly regain its bullish momentum fo a push up into wave D). Be aware that triangles are quite complex, slow corrections and may take some time to develop.
USD/CHF, 4H
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Basic Triangle Pattern:
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