It is possible the EUR/USD is forming an ending diagonal. Above is one possible count for it. If the above count is correct and wave 5 of the ED is almost complete than price must not exceed 1.5172, as one of the rules of ending diagonals is that wave 5 must never exceed wave 3 by price. Ending diagonal are most common during 5th wave extensions, which is the case here, with wave 1 (beginning March '09) and wave 3 being approximately equal.
Here is another possible ED count. I think this count is more likely due to the closer times for corresponding waves. Either way, wave 5 must not exceed wave 3 by price or the ED count is invalid.
Hi,
ReplyDeleteSorry, i've never read that in ending diagonal the 5-wave mustn't exceed wave 3, in fact wave 5 can "throw-over" and in rare case fall short of its resistentrend line, see "Elliott wave principle" by Frost and Prechter.
best regard
I'm not making this stuff up. That would defeat the purpose.
ReplyDelete"Diagonal Rules: Wave 5 is always less than Wave 3 by price."
For a comprehensive list of all the rules see: http://cdn.forexfactory.com/attachment.php?attachmentid=355402