New York time: 00:00:00
Local time: 00:00:00
Newsletter RSS 

Triangle On USDJPY Suggests More Gains In Weeks Ahead

Top



Our Services Video Tour        |           Subscribe to our newsletter


Feb 23 2015

USDJPY is trading sideways for the last two months, but based on a contracting triangle we believe that pair will break to a new high in weeks ahead. We see pair in fourth wave so wave five is expected to complete red wave III of a higher degree sometime this year. Now the question is when break to the upside, out of the range will occur? Well, our primary count shows wave E now in progress, so we may see a little bit more weakness in the next few days, down to around 116-117 support area where we would look for evidence of a completed fourth wave.



Triangle


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.


• structure is 3-3-3-3-3
• each subwave of a triangle is usually a zig-zag
• wave E must end in the price territory of wave A
• one subwave of a triangle usually has a much more complex structure than others subwaves
• appears in wave 4 in an impulse, wave B in an A-B-C, wave X or wave Y in a double threes




Newsletter archive