GBPNZD UPDATE

Elliot wave theory shows how human psychology is reflected in the charts . It is a roadmap to how traders behave or respond to market events. This phenomenon is shown in clear patterns, corrections or trends.

The last update on Gbpnzd showed a comprehensive all-encompassing market analysis that described the possible direction and resting zones to watch out for. Read the analysis titled GbpNzd. There were four probable patterns that price was expected to form.

Anyway!.....Cable Is Bearish

Elliot wave theory is the most complete technical tool to understand the position of price in the framework of the market.. It clearly tells us the degree of any trend and correction within a market structure; when they start and end and what to expect afterward.

UsdCad: The Journey So Far And What To Expect.

UsdCad was my favourite currency pair. I have traded almost all the patterns in between  for a long time. It's count was so easy for me and at a glance, I saw what price was saying in every move and turn.

At the beginning of this year, I started with a bearish bias though with a long term bullish sentiment. The article was titled UsdCad Analysis for 2015. I forecast a rally in price to 1.35 and above, but after a dip to 1.0 region. 

Below is an excerpt from the article.

"In the long term, this current impulsive move from 2011 is probably part of the ‘C’ leg of the projected zigzag corrective pattern. The ‘C’ leg should take us to 1.35xx and 1.46xx in the years to come, probably a period of 3-4 years"

How To Use The Stochastic Oscillator

A lesson from EWI's Jeffrey Kennedy

By Elliott Wave International

The stochastic oscillator is a technical tool that was popularized by George Lane. It is a momentum indicator based on the idea that in an uptrending market the close tends to be near the high of the price bar, and in a downtrending market the close tends to be near the low of the price bar.
Watch an 11-minute lesson from Jeffrey Kennedy's Trader's Classroom to learn how you can use this popular indicator in your analysis and trading.

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3 Lessons: Learn to Spot Trade Setups on Your Charts

In these three video lessons, Jeffrey Kennedy shows you how to look for trading opportunities in your charts. Kennedy, instructor for Elliott Wave International's popular Trader's Classroom service, reviews the 5 core Elliott wave patterns and then shows you how to combine technical methods to create a compelling forecast.
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GbpNzd: It's As Simple As That

Look at the weekly chart of GbpNzd below, what can you see?.

The sell off from 3.7 to 1.75, a 19500 dip from 2000 to 2013. Is it a price movement in correction or motion (trend) ? Is the subsequent bullish move from 1.75 a correction of the bearish trend or continuation of the bullish trend?

Watch Out For EurUSd

The last update I did on this currency pair was titled How to trade the elliot wave pattern when I wrote about how to follow price actions using elliot wave analysis and trading clear patterns that price usually respond to.

Prior to that, there was an update titled Eurusd in a bearish net , which was immediately followed by a fast bearish move.

How To Exit A Trade With A Pattern.

AudJpy was one of the markets doomed for a sell off after an analysis, based on elliot wave theory, that Japanese Yen was expected to strenghten across board, which means that Yen pairs were expected to fall.. 

Yen Pairs fell sharply days after the forecast.

 

AudJpy's decline from 97.399 was expected to be in 5 waves trendy move. 

 Wave 3 of this impulsive move tend to be in progress after the completion of the first two waves.

Perfect Forecast of JP Morgan.The Power of Alternative.

On 8th June, I posted an analysis here titled JP Porgan as caught on elliot wave on how I expected JP Morgan stock price to move in time to come.

I had two scenerios. While I favoured the first, I kept an eye on the second. i wrote about the favoured analysis below.

Tripple Zigzag In EurGbp.

The analytical chart below shows the dip of EurGbp from 0.98 to 0.695; a dip of more than 2800 pips in a period of  5 and a half years.

 

Prior to this dip, there was an advance from 0.566 at the beginning of this millennium (2000); that was more than 8 years.

It is clear that price reversed from 0.98 and still going southward. Few questions that might cross our minds include the following:

1. Is the bearish dip a trend reversal or correction?

2. If it's a correction, where and how could it end?

UsdCad To Take A Rest?

On 31st May, there was analysis here titled Multi Face Analysis of the Usdcad. 

After the analysis, I put a sell order. 

 

I was so sure that I was selling after the completion of a long term flat formation on the weekly chart which was confirmed by the 5-wave impulsive move. 

Price was expected to break below 1.90 in a motive mood.

Short Term Analysis of Cable.

After a long move downside over a long period of time, Cable finally reversed at 1.455 and we are getting close to know how the resultant bullish move could turn to play out. 

Viewing the bullish move through elliot wave binoculars, it's clear that the long term bearish move might not have concluded. What the chart is showing us presently is that price is correcting.

Price behaviour using EWT. A case study on Yen

I have still not yet found any chart theory or technical methodology that can can be used as a market predictive tool like the elliot wave theory. 

Elliot waves theory's ability to distinguish distinctly between a trend and correction is itself a tool which, if well used, builds confidence in a trader.

On 3rd June, I posted an analysis on Yen titled What the charts are saying about Yen. 

I Love Diagonals....Euraud!

This trade was one of the case studies of  'trade the pattern and not the count'. I am a strict advocate of pattern trading. 

 

What's my business opening a position when a pattern is not in place?

Pattern Trading on AudNzd

One of my favourite elliot wave patterns is a well formed 5-wave impulsive move. 

 

A non-overlapping 5-wave decline or advance as discussed by elliot wave theory is my 'bread and butter'. 

 

 

 

The chart above was posted when I saw this pattern emerging on AudNzd on 22nd June in the article titled Audnzd Update. 

 

After the completion of this pattern, a correction was expected. It was not surprising as price dipped fast.

The fifth wave of this pattern also formed a 5-wave pattern which allowed me to put a sell entry at 1.1325 with stop loss of 120 pips. 

 

It was a very sweet trade and I closed my position making 300pips as a correction is expected upside.

 

 

It was a perfect textbook pattern which doesn't happen all the time. It is a high probability trade, not a perfect one. 

 

It is one of the three patterns I intend to share with the participants of my 6-weeks intensive online mentorship course.

 

Book a space today. 

 

Cost: #10000 or $70 

 

Call or send sms to me on +2348134820569 or mail me @ forexmaster05@yahoo.com 

Note: Only serious and interested people should contact me.

 

If you reside in portharcourt and its environ, you can book a one-on-one training with me.

Another pattern that will be taught was seen on Euraud. It was another textbook pattern . Read it above.

How To Trade Elliot Wave Patterns

Elliot wave theory has proved time and time again how effective it could be in determining market direction. 

 

Not only does it have high confident trading patterns to watch out for in any time frame and any market, but does have the ability to forecast market movement.... every bit of it!.

From the super fast tick chart to monthly time frame chart, its effectiveness is superb. 

Eurusd In A Bearish Net.

The chart above was how we counted the elliot wave of eurusd.

 It has been noted that the bullish move from March 2015 is a correction as against the expected impulsive bullish move. 

Is Cadjpy ready to go down?

On 15th June, we forecast a real strength in Yen. Yen pairs were expected to start falling according to the analysis titled Yen is expected to strengthen acrross board.

After a while, UsdJpy started falling but the Cadyen moved within a range.

We have been watching cadjpy for some time . The completion of the recent medium term bullish move could mean the completion of the long term zig zag correction which started in february.

The chart below shows the intra day wave count. A break below 99.45 could mean the continuation of the bearishness that paused before february.

Audnzd Update

On 10th June, we did an analysis titled Audnzd preparing for a new bullish move. We were willing to take a buy trade at 1.0815 with final target at 1.127. 

We did and price advanced very fast. 

 

 

In the last analysis, we used the chart above which showed a systematic impulsive dip that started toward the end of 2010 and ended in march around 1.0 price level.

 

Price advanced immediately after the completion of the fifth wave  in what was expected to be the first impulsive move of a major correction. 

This move was expected to end at 1.2770 ( the present price level).

 

The recent bullish move is a typical motive wave and a pull back is expected as price should advance to 1.2 region.

The chart below shows the first impulsive move of the correction.

 

 

 

1.300 ( a strong resistance) and 1.1475 ( 100% projection of wave 1-3 from 4) are good levels of reversal. 

Price is not expected to break above 1.1475 before the intraday bearish movement starts.

 

From the intraday chart below, we'll see that price could still move a bit upside, probably above 1.300 before turning to the south. 1.1475 should be held above. 

 

 

Intra day Triangle in Eurusd

On 31st may, there was an analysis here titled Two Face Of Eurusd and I wrote about the two possible near term scenario.

 

I though, maintained a bullish bias but with a condition. The bullish set up was satisfied and price rallied, just as expected. I posted an update before that. Read HERE. 

 

To end that post, I wrote 

 

"It's expected to be  impulsive, but a deep correction could emerge in double or triple zigzag correction which would force us to note that there could still be some move downside despite the general belief that Eurusd has bottomed on the long term"

 

With the pattern forming now, as shown in the diagram below, the recent bullish move is counting toward a double zig zag correction.

There has been some economic news  surrounding this pair of late. many investors are on the sideline and price went into a congestion ( a triangle correction).

 

 

Price broke out of the triangle with a minimal momentum and further momentum is expected for Eurusd to rally to 1.175... psychological level where the correction could finally end for the resumption of  the long term bearsih movement.

Gbpusd Intra day Update.

The market ended today with cable advancing further . 

 

After taking a buy at 1.5350 with first real target at 1.5620 (270 pips), I decided to cash out as price is expected to correct to 1.5450.

 

The intra day wave analysis in the chart below shows that the first two days of this week have almost completed an ending diagonal terminating the impulsive wave 3 that started last week and price could dip but not below 1.5451 before further rally above 1.5650 and probably 1.5807.

 

 

 

If price dips below 1.5451, the bears will have taken the intra day bearish movement and we might see a dip to 1.5.