Wave pattern on the H4 chart:
The wave is at the end of the main downtrend of the daily scale, which began in January and is still unfinished.
Wave pattern on the H1 chart:
From October 5, a wave with no reversal potential began to form on the chart upwards. In a larger design, it will become a correction. The first parts (A-B) are completed in the movement structure.
Wave pattern on the M15 chart:
The bullish movement began to develop from November 13th. In the hourly wave, it gave rise to the final part (C). After reaching the target zone with a high probability will be rolled back down.
Recommended trading strategy:
A movement against the main trend is being formed on the market, which would more be a correct to miss. Short-term purchases are possible as part of the intraday but it is more reasonable to reduce the lot.
Resistance zones:
- 0.7340 / 0.7390
Support areas:
- 0.7200 / 0.7150
Explanations of the figures:
The simplified wave analysis uses waves consisting of 3 parts (A-B-C). For the analysis, three main TFs are used. On every last part, the incomplete wave is analyzed. Zones show calculated areas with the highest probability of reversal.
The arrows indicate the wave marking by the method used by the author. The solid background shows the formed structure while the dotted shows the expected movement.
Note: The wave algorithm does not take into account the duration of tool movements over time. To conduct a trade transaction, you need confirmation signals from the trading systems you use!
The material has been provided by InstaForex Company - www.instaforex.com