CAD/CHF Price In A Wave 5 Completion ( Buy Setup )

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Price has been in a bullish move which I consider to be an impulse wave. As we know that wave 1 and 4 never overlaps which in some cases I can allow us to trade the fifth wave, but that is defined by how the 4th wave unfolds. Wave 3 is never the shortest in whatever case. So the deeper the wave 4 correction the better it is to be able to trade the fifth wave.

So, in this case, wave 4 was retraced between 38,2 to 50 fib retracement and also we have what we consider to be a base channel. Wave 4 made a 4th touch to the base channel which can suggest that the price will start moving to the upside from that level. Also keeping waves 1 and 4 never overlaps, this may be helpful to set stop losses/invalidation.

Feragatname

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