Wave pattern on the H4 chart:
On August 15, a new ascending section of the chart began. Its high wave level indicates a continuation of the trend with a transition to a larger scale of movement.
Wave pattern on the H1 chart:
As part of a larger wave of the hourly scale from September 21, a downward correction is formed (B).
Wave pattern on the M15 chart:
The direction of the intraday trends is due to the rising wave of October 9. To date, the first two parts of the wave ( A-C) are fully formed.
Recommended trading strategy:
Signals for investment in the instrument are not formed. It is necessary to wait for the completion of the entire descending wave. Short-term purchases with a reduced lot are possible within the intraday.
Resistance zones:
- 1.1600 / 1.1650
Support areas:
- 1.1460 / 1.1410
Explanations of the figures:
A simplified wave analysis uses a simple waveform, in the form of a 3-part zigzag (A-B-C). Three main timeframes are used for the analysis. The last incomplete wave for every timeframe is analyzed. Zones show the calculated areas with the greatest probability of a reversal.
Arrows indicate the counting of wave according to the technique used by the author. The solid background shows the generated structure and the dotted exhibits the expected wave motion.
Note: The wave algorithm does not take into account the duration of the tool movements in time. To conduct a trade transaction, you need to confirm the signals used by your trading systems.
The material has been provided by InstaForex Company - www.instaforex.com