Please be sure to read the last two posts. This is a just an update to what has been a somewhat confusing count. We all know the market is going higher than the economy can justify. I think this is why we are seeing so many Ending Diagonals. The market should turn tomorrow morning and my expectation is that it will regress to the bottom trend line of the very large Ending Diagonal (Blue Lines). Other indicators also find support near 935.
Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.
Do 1 and 4 have to overlap in an ending diagonal? therefore target for 4 would be lower.
ReplyDeleteThanks
Good question HD.
ReplyDeleteWave 1 and 4 often overlap, but it is acceptable if they do not overlap. They are a 3-3-3-3-3 diagonal which substitutes for an impulse wave. They occur most often in the 5th wave and less often in C waves.
Ending Diagonals are found in markets that have gone too far and too fast, which is why we are finding so many recently.