Diagonal pattern and the probability of formation of an uptrend
Dear traders
In some charts and currencies, we cannot have an exact technical analysis, which might be due to a complex corrective wave. Diagnosis of these kinds of wave are very difficult and sometimes they are impossible to identify.
In these cases, I am looking for patterns that are formed in the market, the most important of which are Diagonal and Triangle. Based on these patterns we are able to detect the correct trend for buying and selling.
In the 240-minute chart, the uptrend which started in the range of 1.6120 has ended in the range of 1.6558 that was in the form of 5 waves. The corrective movement, which has been completed in the range of 1.61379, has been in the form of 3 waves.
Wave C consists of the corrective movement of the Ending Diagonal pattern, which is shown in the 60-minute chart. In continuation the first 5 ascending waves that could cross through the end of the wave 4 are formed (1.6200)
With the price crossing the 1.6200 range and reaching the 1.6326 range (the first 5 waves), the corrective movement started and in continuation, the uptrend has started in the 3rd wave, which can be extended up to the 1.6500 targets, which is the beginning of the Diagonal pattern.
The point is, the currency’s long-term movement is mixed, but given this pattern, I can hope for the formation of a good uptrend to the range of 1.6500.
In some charts and currencies, we cannot have an exact technical analysis, which might be due to a complex corrective wave. Diagnosis of these kinds of wave are very difficult and sometimes they are impossible to identify.
In these cases, I am looking for patterns that are formed in the market, the most important of which are Diagonal and Triangle. Based on these patterns we are able to detect the correct trend for buying and selling.
In the 240-minute chart, the uptrend which started in the range of 1.6120 has ended in the range of 1.6558 that was in the form of 5 waves. The corrective movement, which has been completed in the range of 1.61379, has been in the form of 3 waves.
Wave C consists of the corrective movement of the Ending Diagonal pattern, which is shown in the 60-minute chart. In continuation the first 5 ascending waves that could cross through the end of the wave 4 are formed (1.6200)
With the price crossing the 1.6200 range and reaching the 1.6326 range (the first 5 waves), the corrective movement started and in continuation, the uptrend has started in the 3rd wave, which can be extended up to the 1.6500 targets, which is the beginning of the Diagonal pattern.
The point is, the currency’s long-term movement is mixed, but given this pattern, I can hope for the formation of a good uptrend to the range of 1.6500.
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