USDCAD- When you are wrong in waves from high@1.3306

Oct 16, 2016

One of the cardinal rules of elliottwave- wave 4 can never ever go into wave 1 region - from highs 1.3306 -this fall has been in 3 waves down. From 1.3306 to 1.3185 -called as wave 1 -then wave 2 from 1.3185 to 1.3220 -finally from 1.3220 to 1.3101- wave 3

So what is next - obviously wave 4 -as all we know -wave 4 can never go in the wave 1 region- where does wave 1 completed at? - Yes, you are correct at lows 1.3185- wave 1 completed so when do you know your count is wrong -very simple, if UC goes above 1.3185 which is wave 1 as per our assumption this count becomes invalid, so what are we left with - a corrected pattern & once it starts moving above 1.3220 - it will become A-B-C pattern.

Result- Going above 1.3185 -bears- a warning sign & going above 1.3220 -surely bears will be killed.