The Secret Of 4 - AUDUSD

The secret is there is no secret. When trading Elliott wave moves (4) can often be the most complex, and unpredictable.

Wave four is typically clearly corrective. Prices may meander sideways for an extended period, and wave four typically retraces less than 38.2% of wave three. Volume is well below that of wave three. This is a good place to buy a pull-back if you understand the potential ahead for wave 5. Still, fourth waves are often frustrating because of their lack of progress in the larger trend. At the end of wave 4, more buying sets in, and prices start to rally again.

In this instance, we have a clear Monthly target zone - supported by Overbought Oscillators.


Weekly outlook is also similar to that of the monthly.


The Daily structure is more interesting to see the move off the X-Trend or dip below it.


A key area for the daily is around 0.73000 level


In addition, there is a 2.618 extension from below - usually acting as a good target back for a retest after such an impulsive move up.


Turning dates and pointers - This is a relatively new method for me, but a good friend of mine has used it for many years and in all fairness, it's not often too far out. Next date being around the 6th -12th of April for a change in direction. (Daily) as there's a weekend in there it's more likely to be 6-9th.


On the smaller timeframes - there was a clear tag and go from the Golden Zone which dates back some time.


Wyckoff structure - leaving the station (again smaller timeframe)


Some pretty lines that make me think of a certain kind of pattern. 😜


And finally the DXY - I would really like to see a 93.20 level to complete this 4 move up DXY (Down AUDUSD).

So overall trend bias is bullish - this is clearly a messy 4 move down, so expect a pullback here and a continuation down for a little more.

Safe trading!


Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.