Strong Moves Often Mean One Thing: Wave 3!
Hello traders! If you’ve been watching EUR/USD, you’ve probably noticed the recent explosive move higher. When you see a sharp, powerful trend like this, there’s a good chance you’re looking at a third wave in Elliott Wave theory. And guess what? That’s exactly what seems to be unfolding here.
Wave-by-Wave Breakdown:
Wave 1: The first push up—this sets the tone for a potential new trend.
Wave 2: A corrective pullback that held its ground, acting as the calm before the storm.
Wave 3: Boom! This is where things get exciting. Wave 3 is usually the strongest, most aggressive move in an impulse wave. In EUR/USD, we’ve seen an extended and powerful run, confirming the textbook characteristics of a Wave 3.
Wave 4 (In Progress): After that big Wave 3, we’re seeing a pullback—a classic Wave 4 correction. This is where many traders sit back and wait.
Why This Matters:
Once Wave 4 completes, we could be looking at Wave 5, the next leg higher. While Wave 5 might not always be as explosive as Wave 3, it’s often a high-probability setup for trend continuation traders. If Wave 4 stabilizes near key support zones (watch 38.2% or 50% retracements of Wave 3), Wave 5 could be a clean move higher.
Actionable Tips for Traders:
Watch for signs that Wave 4 is ending: slowing momentum, bullish reversal candles, or support holding.
Use tools like RSI and MACD to spot hidden bullish divergence as a clue.
Plan entries above minor resistance levels, and keep stops tight below Wave 4’s low.
Final Thoughts:
Powerful moves like Wave 3 grab attention—but it’s often the Wave 5 trade that gives us a structured, high-probability opportunity. Stay patient, stay focused, and let the waves guide you!
If you found this analysis helpful, give it a like and follow for more real-time wave breakdowns!
Hello traders! If you’ve been watching EUR/USD, you’ve probably noticed the recent explosive move higher. When you see a sharp, powerful trend like this, there’s a good chance you’re looking at a third wave in Elliott Wave theory. And guess what? That’s exactly what seems to be unfolding here.
Wave-by-Wave Breakdown:
Wave 1: The first push up—this sets the tone for a potential new trend.
Wave 2: A corrective pullback that held its ground, acting as the calm before the storm.
Wave 3: Boom! This is where things get exciting. Wave 3 is usually the strongest, most aggressive move in an impulse wave. In EUR/USD, we’ve seen an extended and powerful run, confirming the textbook characteristics of a Wave 3.
Wave 4 (In Progress): After that big Wave 3, we’re seeing a pullback—a classic Wave 4 correction. This is where many traders sit back and wait.
Why This Matters:
Once Wave 4 completes, we could be looking at Wave 5, the next leg higher. While Wave 5 might not always be as explosive as Wave 3, it’s often a high-probability setup for trend continuation traders. If Wave 4 stabilizes near key support zones (watch 38.2% or 50% retracements of Wave 3), Wave 5 could be a clean move higher.
Actionable Tips for Traders:
Watch for signs that Wave 4 is ending: slowing momentum, bullish reversal candles, or support holding.
Use tools like RSI and MACD to spot hidden bullish divergence as a clue.
Plan entries above minor resistance levels, and keep stops tight below Wave 4’s low.
Final Thoughts:
Powerful moves like Wave 3 grab attention—but it’s often the Wave 5 trade that gives us a structured, high-probability opportunity. Stay patient, stay focused, and let the waves guide you!
If you found this analysis helpful, give it a like and follow for more real-time wave breakdowns!
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