EURCAD is offering a small move to the downside. The target to look for here is the 1-4 line. I have highlighted where the highest excursion of price might go before falling. Make note of that level as it can act as resistance.
Best, Chartistry
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UPDATE: Although this was not a successful trade. It is interesting to observe the 5' (prime) line acting as a reaction point for EURCAD and the 1-4 line acting as the equilibrium point for the move.
Thank you for posting this chart as it is very educational and to train your eye for future set-up's like this , it does not mean that price will drop at 5 or even an AB=CD completion , he Copy of 2-4 Line and then the intersection of price at 5' is just as important .
Thank you once again .
GWaves
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@johnmad, Hi John, great observation. 5', more often than not, acts as a reactionary line to the Geo'. I find it fascinating that dramatic moves in the market, such as the one on this chart, still abide by the rules of certain geometries and mathematics in general.
Thank you once again .