USDCHF has been trading in an impulse wave. Price now formed an Ending Contracting Diagonal on wave 5 suggesting that the impulse is now complete. Elliott Wave is a study of human psychology as we as humans have patterns in our behaviors. To put this in terms of the charts or technical analysis in a bullish trend, wave 3 is where there is a bit of hope and a lot of buyers and people are pushing the price and on the wave, 4 people start exiting their positions and only a few buyers left that one of the reasons why a wave 5 is fairly short-term lived.
Then followed by a crash and start correcting in this case we have wave 5 as a diagonal pattern to justify that it's safe to say we will be followed by a sharp and rapid drop. The tricky part with an Ending diagonal pattern is that there is no clear target level you will have to rely on Fibonacci retracement golden zones and the sub-waves.
Then followed by a crash and start correcting in this case we have wave 5 as a diagonal pattern to justify that it's safe to say we will be followed by a sharp and rapid drop. The tricky part with an Ending diagonal pattern is that there is no clear target level you will have to rely on Fibonacci retracement golden zones and the sub-waves.
