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NZDUSD Elliott Wave View: Correction in progress


Short term Elliott Wave view in NZDUSD suggests the decline to 0.6844 low ended cycle from 3/21 high in Minor wave W. Pair is currently correcting cycle from 3/21 high in 7 or 11 swing in Minor wave X before the decline resumes. The rally from 4/27 low (0.6844) is unfolding as a double three Elliott Wave structure where Minute wave ((w)) ended at 0.6937 as a Flat Elliott wave structure , and Minute wave ((x)) pullback ended at 0.69. Near term, pair is correcting cycle from 0.69 low within Minutte wave (b) and while dips stay above there, expect pair to resume higher towards 0.699 – 0.7014 area before the decline resumes. We expect Minor wave X rally to find sellers at 0.699 – 0.705 area for an extension lower or at least a 3 waves pullback as far as pivot at 0.709 high remains intact.

NZDUSD 1 hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Nikkei Elliott Wave View: Ending impulsive 5 waves

Short term Elliott Wave view in Nikkei ( NKD_F) suggests that the decline to 4/16 low (18255) ended primary wave ((4)). Up from there, the rally is unfolding as an impulse Elliott wave structure where Minute wave ((i)) ended at 18590, Minute wave ((ii)) ended at 18315, Minute wave ((iii)) ended at 19355, and Minute wave ((iv)) ended at 19170 low. Near term index has reached the minimum extension area in Minute wave ((v)) already, however another push higher towards 19579 area can be seen before index ends cycle from 4/17 lows in Minor wave A. Afterwards index is expected to see a pullback in 3, 7 or 11 swings within Minor wave B before further upside is seen. We don’t like selling the proposed pullback and expect buyers to appear again once Minor wave X pullback is complete in 3, 7, or 11 swing provided that pivot at 4/16 low (18255) remains intact.
Nikkei 1 Hour Elliott Wave Chart

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USDCAD swings sequence calling the rally

Hello fellow traders. In this technical blog we’re going to take a quick look at the past Elliott Wave chart of USDCAD published in members area of www.elliottwave-forecast.com. In further text we’re going to explain the structure,count the swings and see how we forecasted the path.
USDCAD Elliott Wave 1 Hour Chart 04.27.2017
As our members know, we were pointing out that USDCAD is having incomplete bullish swings sequnces from the 04/13 low . Structure has been calling for more strength in 7th swings once (x) blue pull back completes as Expanded flat. As far as short term pivot at 1.3406 low holds, the pair will be ideally targeting 1.3713 area. . At the chart below we can see that 6th swing is unfolding as expanded flat looking for 1.3526-1.34977 area to complete. Due to incomplete bullish sequences we recommended our members to avoid selling the pair, keep favoring the long side


USDCAD Elliott Wave 1 Hour Chart 05.02.2017
Eventually the pair has reached propoes 50 fibs area at 1.35267 and completed (x) blue there as irregular flat structue. We got nice reaction higher. Currently approaching ideal target area at 1.3715-1.3788 and it’s already close to ending the cycle from the 04/13 low . Current price structure met minimum requirements already, and we should be careful chasing the strengths at this stage.
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NZDUSD Elliott Wave View: Correction Ended


Revised Elliott Wave view in NZDUSD suggests the decline from 3/21 high (0.709) is unfolding as a triple three Elliott Wave structure where Minute wave ((w)) ended at 0.6905, Minute wave ((x)) ended at 0.7053, Minute wave ((y)) ended at 0.6844 and Minute second wave ((x)) is proposed complete at 0.6968. Minute wave ((z)) is in progress and unfolding as a double three Elliott Wave structure where Minutte wave (w) is expected to complete at 0.6815 – 0.6846 area, then it should bounce in Minutte wave (x) to correct cycle from 5/2 high before pair resumes lower again. We don’t like buying the pair and expect bounces in Minutte wave (x) to find sellers in 3, 7, or 11 swing provided that pivot at 0.6968 high remains intact.

NZDUSD 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

NZDUSD Elliott Wave View: Downside Resumes


Revised Elliott Wave view in NZDUSD suggests the decline from 3/21 high (0.709) is unfolding as a triple three Elliott Wave structure where Minute wave ((w)) ended at 0.6905, Minute wave ((x)) ended at 0.7053, Minute wave ((y)) ended at 0.6844 and Minute second wave ((x)) is proposed complete at 0.6968. Minute wave ((z)) is in progress and unfolding as a double three Elliott Wave structure where Minutte wave (w) ended at 0.6835 , and Minutte wave (x) is in progress to correct cycle from 5/2 high before pair resumes lower again. We don’t like buying the pair and expect bounces in Minutte wave (x) to find sellers in 3, 7, or 11 swing for more downside provided that pivot at 0.6968 high remains intact.

NZDUSD 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

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How Bullish is the SPX, Can it see 3189 area?

This is Elliott Wave analysis video on SPX and DJUSRE (Dow Jones Real Estate Index) in which we are going to take a look if SPX can reach the 3189 area to the upside before ending the all time cycle. In order to answer it, we will look for a clue in the market by analyzing DJUSRE. The DJUSRE (Dow Jones Real Estate Index) is following similar cycles with the world indices, but correlating DJUSRE with SPX and other world indices, DJUSRE is lagging and hasn’t broken the 2007 peak yet. If the Real Estate Index manages to break above 2007 peak, it will show incomplete bullish sequence and can eventually see 454- 541 area to the upside. That area in DJUSRE then can allow SPX to see the 3189 area next before ending the cycle from 2009 lows and index should correct the all time cycle.

SPX Upside Target Area Video

DJUSRE Long Term Elliott Wave View

SPX Long Term Elliott Wave Chart

GBP USD made new high after Double Three correction

May 8, 2017 By EWF Vlada

Hello fellow traders. In this technical blog were going to take a quick look at the past Elliott Wave chart of GBP USD published in members area of www.elliottwave-forecast.com. In further text were going to take a look at the structures,count the swings and explain the reasons why we called for the extension to the upside.
GBP USD Elliott Wave 4 Hour Chart 4.29.2017
As we can see on the chart below, rally from the 03/14 low is showing incomplete structure. GBP USD is currently showing 9 swings from the mentioned low, suggesting we should get another leg up, once short term ((b)) pull back complete. With proposed scenario we will get clear 11 swings structure. Although the pair has already reached the extreme area from the 03/14 low at 1.284-1.3801, we knew that extension is possible not only because of incomplete structure in GBP USD, but also because of incomplete bearish swing structure we have had in USDX from the 12/15 peak, calling for more weakness. As GBP USD is inversely correlated with Dollar index, we expect GBP USD to ideally stay supported until USDX reaches extremes in the mentioned cycle.

Now lets take a look at the short term structure that has been unfolding during the next few days.
GBP USD Elliott Wave 1 Hour Chart 5.4.2017

We got nice pull back in wave ((b)) as expected. Short term structure suggests ((b)) pull back is still in progress as Double three (w)(x)(y) structure.It should ideally make another push down and reach 1.2842-1.2817 area, before intraday buyers appear for another leg up.
Shortly after, GBPUSD reached 1.2842-1.2817 area as expected. It found buyers there as expected, make nice rally and eventually it broke above 04/28 peak , which is labeled on the chat as wave ((a)) .
Keep in mind market is dynamic. If youre interested in the future path of GBPUSD or in any of the other 50+ instruments we cover, join us now. You can find Elliott Wave analysis in the membership areaof EWF. If not a member yet, Sign Up for Free Trial now.
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You will get access to Professional Elliott Wave analysis in 4 different time frames. 3 live Analysis Session done by our Expert Analysts every day. 24 Hour Chat Room support, Market Overview, Weekly technical videos and much more. Welcome to Elliott Wave Forecast.

SPX Elliott Wave View: Diagonal Structure


Short Term Elliott Wave view in SPX suggests the rally from 3/27 low (2322.2) is unfolding as a leading diagonal Elliott Wave structure where Minute wave ((i)) ended at 2378.36, Minute wave ((ii)) ended at 2328.95, Minute wave ((iii)) ended at 2398.16, and Minute wave ((iv)) ended at 2379.75. The Index has broken above previous Minute wave ((iii)) and thus it has met the minimum requirement in the number of swing to end cycle from 3/27 low as a leading diagonal. However, while near term pullbacks stay above 2380, further upside in one more leg still can’t be ruled out before cycle from 3/27 low ends. Near term, Minute wave (v) is proposed to be unfolding as a zigzag Elliott Wave structure where Minutte wave (a) ended at 2403.8 and Minutte wave (b) ended at 2392.4. While pullbacks stay above 2392.4, and more importantly above 2380, Index has scope to extend one more leg higher. We don’t like selling the Index.

SPX 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Learning Flat Elliott Wave Structure

There are three different types of Flat Elliott Wave Structure:
A. Regular Flat Elliott Wave Structure

Rules:

1. Corrective 3 waves labelled as ABC
2. Subdivision of wave A and B is in 3 waves
3. Subdivision of wave C is in 5 waves
4. Wave B terminates near the start of wave A
5. Wave C generally terminates slightly beyond the end of wave A
6. Wave C must have momentum divergence

Fibonacci Relationship:

1. Wave B = 50%, 61.8%, 76.4%, or 85.4% of wave A
2. Wave C = 61.8% 123.6% of wave AB

B. Expanded Flat Elliott Wave Structure

Rules:

1. Corrective 3 waves labelled as ABC
2. Subdivision of wave A and B is in 3 waves
3. Subdivision of wave C is in 5 waves
4. Wave B terminates beyond the starting level of wave A
5. Wave C ends substantially beyond the ending level of wave A
6. Wave C must have momentum divergence

Fibonacci Relationship:

1. Wave B = 123.6% of wave A
2. Wave C = 123.6% 161.8% of wave AB

C. Running Flat Elliott Wave Structure

Rules:

1. Corrective 3 waves labelled as ABC
2. Subdivision of wave A and B is in 3 waves
3. Subdivision of wave C is in 5 waves
4. Wave B terminates substantially beyond the starting level of wave A
5. Wave C travels full distance, falling short of the level where wave A ended
6. Wave C must have momentum divergence

Fibonacci Relationship:

1. Wave B = 123.6% of wave A
2. Wave C = 61.8% 100% of wave AB

Learning Flat Elliott Wave Structure recording


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Paypal Elliott Wave Technical Structure

Paypal (NASDAQ: PYPL) is a worldwide online payments company founded 18 years ago. It had its first IPO in 2002 , but in this article we will only be looking at the technical picture for PYPL since its second IPO 2 years ago which valued the company at $46.6 billion. So with the only data available since 2015, we need to present the current different structures that can be labeled in the daily chart and then make a path accordingly.
Paypal Diagonal Structure
Looking for a clean 5 waves move is hard these days but switching to the leading diagonal is an easy choice as corrective 3 waves structure is filling the charts. So accordingly , PYPL can be ending the cycle from 2016 low around equal legs area 48.67 51.17 as wave (3) without divergence before a 3 waves pullback can take place. Paypal wave (4) should remain within the bullish channel and the pivot at 38 low needs to remain in place for the stock to be able to resume the rally for new highs after ending the correction.

Paypal Double Three Structure
Using 2016 correction as a connector , we can label PYPL as a 7 swings structure from August 2015 low which already reached the extreme area and currently entering equal legs 48.72 area from June 2016 low. The bullish cycle will remain alive as long as pivot at 39.02 low is holding which means the stock can ideally do a short term 3 waves pullback in wave ((iv)) of C before a final thrust higher toward 51.22 55.27 area. There PYPL should be ending the whole cycle from 2015 low and a larger pullback can take place.

Paypal Triple Three Structure
PYPL can also be counted as 9 swings structure if we use double connectors supported by oscillations, so the stock is then entering the target area for wave (Z) = wave (Y) = wave (W) around 48.67 52.75 area and will be then ending the cycle from 2015 low . So it will be the same result as mentioned in the case of the double three structure which is a big correction in wave ((X)).

Recap:
Market condition have changed during the recent decades and every analyst / trader needs to adapt to the new conditions to have a clear path. One of the observation that we came across in EWF is that markets can be trending higher or lower in series of 3 wave moves which can be commonly seen in most forex pairs. Paypal is currently moving in 3 wave sequences rather than impulsive waves and the 3 scenarios presented above is only helping us to identify the areas where the cycle can be ending to prepare for the next move. Consequently , the current $50-$55 area can produce a pullback for the stock and depending on the speed and timing of the move well know which cycle has ended and where will be the next buying opportunity as all scenarios are still pointing to more upside after the corrections.

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SPX Elliott Wave View: Near Pullback


Short Term Elliott Wave view in SPX suggests the rally from 3/27 low (2322.2) is unfolding as a leading diagonal Elliott Wave structure where Minute wave ((i)) ended at 2378.36, Minute wave ((ii)) ended at 2328.95, Minute wave ((iii)) ended at 2398.16, and Minute wave ((iv)) ended at 2379.75. The Index has broken above previous Minute wave ((iii)) and thus it has met the minimum requirement in the number of swing to end cycle from 3/27 low as a leading diagonal. Although the cycle from 3/27 low is already mature, another leg higher can’t be ruled out as far as pullbacks stay above 2380. Near term, Minute wave (v) is proposed to be unfolding as a zigzag Elliott Wave structure where Minutte wave (a) ended at 2403.8 and Minutte wave (b) ended at 2392.4. While pullbacks stay above 2392.4, and more importantly above 2380, Index has scope to extend one more leg higher. We don’t like selling the Index and chasing the last leg higher here is also a bit risky. Expect cycle from 3/27 low to end soon with or without one more leg higher and Index to do larger degree pullback in 3, 7, or 11 swing to correct cycle from 3/27 low before the rally resumes.

SPX 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

SPX Elliott Wave View: Pull back started

Short Term Elliott Wave view in SPX suggests the rally from 3/27 low (2322.2) ended at 2403 as a leading diagonal Elliott Wave structure where Minute wave ((i)) ended at 2378.3, Minute wave ((ii)) ended at 2328.95, Minute wave ((iii)) ended at 2398.16, Minute wave ((iv)) ended at 2379.75, and Minute wave ((v)) of A ended at 2403. Near term, while bounces remain below there expect the Index to pull back in larger degree 3, 7, or 11 swings to correct cycle from 3/27 low before the rally resumes again. We don't like selling the Index and expect buyers to appear after 7 or 11 swings pull back for extension higher. This view remains valid as far as pivot at 3/27 (2322.2) low remains intact.

SPX 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Macron’s Triumph Removes Eurozone Political Risk

Emmanuel Macron won the presidential election last Sunday, defeating Marine Le Pen, a far-right nationalist who wanted to take France out of the European Union. Markets had feared that Le Pen’s win could threaten the EU project, but Macron’s win has eliminated uncertainty regarding France’s membership of the Euro and removed the risk of near-term severe political shock to France and wider Europe. The Euro went above $1.10 briefly, but since then has pulled back. The upwards move was not dramatic than the first round of French elections as many traders have anticipated Macron’s victory and thus victory was already well priced in.
The new president has promised economic reforms to restore France’s competitiveness, but Macron currently only has a newly formed minor party and it’s unclear how much support he will get given at least half of its parliamentary candidates will have no prior political affiliations. Thus, the market has now turned its attention to the next legislative election in June. Macron needs to get majority in the National Assembly, otherwise the Prime Minister who exercises the main executive authority, could be a part of the opposition and may ignore his program. It’s crucial for Macron to succeed in parliamentary elections next month in order to enact his reforms.
Macron’s task won’t be easy as he is going to assume a presidency of a nation that is still very divided. One third of French people who voted preferring Le Pen and populism, and over a quarter of French people abstained in the voting. This is one of the highest abstention rates in the history of France and for the first time in the history of France, the election didn’t have candidate from the main parties of the left and right. If Macron falls short of a majority in the June’s legislative election, he would need to form a governing coalition with other parties. And if another party wins a majority, then he needs to deal with the rival party during periods called cohabitation.

With France’s traditional party system losing confidence by the voters, the risks of cohabitation and political dysfunction have increased. If an opposition party won the majority in National Assembly, Macron will likely be unable to carry out his ambitious political reform. During cohabitation period, normally the president will have a diminished role, and the Premier (Prime Minister) is the one who exercise main executive policy making authority. If, on the other hand, Macron’s party secures parliamentary majority, Macron’s presidency will be smooth and he will be able to implement his agendas.
Despite the uncertainty in the coming June ‘s legislative election, the triumph of Macron is still important as it has removed the worst case scenario for the short term, and this may provide some sort of floor to Euro dollar weaknesses.
EURJPY Long Term Elliott Wave View


Daily chart of EURJPY is showing a 5 swing sequence from 7.8.2016 low, suggesting that as far as pair stays above swing #4 (115.19), it has scope to extend higher. How does this impact the more popular EURUSD? We can look at the correlation between the two pairs below
Overlay of EURJPY and EURUSD

An overlay of EURJPY and EURUSD chart above shows that the move in the two pairs could have a different degree of strength in certain period. For instance, the move during the period of 2015 – 2017 in EURJPY did not create a new low below 2012 low while the move in EURUSD in the same period produced a new low. Despite the different degree of strength, the two pairs still share remarkable similar oscillation and if one pair is trending higher, the other one is likely also moving in the same direction and vice versa. We have seen in the first chart that EURJPY has a bullish sequence from 6.24.2017 low and thus the pair can see an extension higher. Based on the correlation chart above, we may conclude that EURUSD should not see a lot of weaknesses if EURJPY is expected to continue to the upside in 7 swing.
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FTSE Elliott Wave View: Mature Cycle

Short Term Elliott Wave view in FTSE suggests the rally from 4/20 low (7096.6) is unfolding as a zigzag Elliott Wave structure where Minute wave ((a)) ended at 7302.57 and Minute wave ((b)) ended at 7197.28. Subdivision of Minute wave ((a)) is unfolding as an impulse where Minuttte wave (i) ended at 7134.53, Minutte wave (ii) ended at 7104.22, Minutte wave (iii) ended at 7290.82, Minutte wave (iv) ended at 7262.32, and Minutte wave (v) of ((a)) ended at 7302.57. Index has since broken above 7302.57 suggesting Minutte wave ((c)) has started.

Minute wave ((c)) is currently in progress as an ending diagonal where Minutte wave (i) ended at 7280.7, Minutte wave (ii) ended at 7222.81, Minutte wave (iii) ended at 7398.58, and Minutte wave (iv) ended at 7369.23. Index has reached 1.236 extension of the Minute ((a)) – ((b)) and thus minimum requirement has been met for Minor wave 1 to complete and cycle from 4/20 low to end, although a marginal high still can’t be ruled out at this stage. Expect Index to correct cycle from 4/20 low soon within Minor wave 2 in 3, 7, or 11 swing before the rally resumes. We don’t like selling the proposed pullback and expect buyers to appear again when Minor wave 2 pullback is over in 3, 7, or 11 swing.

FTSE 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

NZD JPY Elliott wave sequence forecasts the rally
May 16, 2017 By EWF Vlada
In this technical blog we’re going to take a quick look at the past Elliott Wave charts of NZD JPY published in members area of www.elliottwave-forecast.com. We’re going to take a look at the structures, count the swings and explain the trading setup.
The chart below is NZD JPY 4 hour update from 05.04.2017. As our members know, we were pointing out that NZDJPY is having incomplete bullish swings sequnces from the 75.62 low. Structure has been calling for more strength in 7th swing toward 78.40-78.94 ( taking profit area). Once the pair reaches proposed area in 7 swings, we expect to see 3 wave pull back to correct the cycle from the lows.

Now let’s take a look at the short term structures…
NZD JPY 1 Hour Chart 05.04.2017
The pair is bullish against the 76.112 low. Wave (x) pull back is expected to make another short term low ideally to reach 77.22-76.90 ( buying area). As we got incomplete bullish sequences in 4 hour chart, we advised our members to avoid selling the pair and keep buying dips in 3,7,11 swings. Invalidation level for the trade comes at 76.90 and we’re targeting 78.40-78.94 area.

NZD JPY 1 Hour Chart 05.09.2017
Eventually the pair has reached proposed target, giving us nice profits. As of right now, the pair has scope to extend little bit higher still toward 79.03-79.32 area before find sellers for for a 3 wave pull back at least.

Keep in mind market is dynamic. If you’re interested in the future path of NZDJPY or any of the other 50+ instruments we cover, join us now. You can find Elliott Wave analysis in the membership areaof EWF. If not a member yet, Sign Up for Free Trial now.
Elliott Wave Forecast
Through time we have developed a very respectable trading strategy. It defines Entry, Stop Loss and Take Profit levels with high accuracy and allows you to make position Risk Free, shortly after taking it, protecting your account. If you want to learn all about it and become a professional Trader, join us now for Free.
You will get access to Professional Elliott Wave analysis in 4 different time frames. 3 live Analysis Session done by our Expert Analysts every day. 24 Hour Chat Room support, Market Overview, Weekly technical videos and much more. Welcome to Elliott Wave Forecast.

FTSE Index Elliott Wave View: Ending A Cycle

Short Term Elliott Wave view in FTSE Index suggests the rally from 4/20 low (7096.6) is unfolding as a zigzag Elliott Wave structure where Minute wave ((a)) ended at 7302.57 and Minute wave ((b)) ended at 7197.28. Subdivision of Minute wave ((a)) is unfolding as an impulse where Minuttte wave (i) ended at 7134.53, Minutte wave (ii) ended at 7104.22, Minutte wave (iii) ended at 7290.82, Minutte wave (iv) ended at 7262.32, and Minutte wave (v) of ((a)) ended at 7302.57. FTSE Index has since broken above 7302.57 suggesting Minute wave ((c)) has started.

Minute wave ((c)) is currently in progress as an ending diagonal where Minutte wave (i) ended at 7280.7, Minutte wave (ii) ended at 7222.81, Minutte wave (iii) ended at 7460.20, and Minutte wave (iv) ended at 7435.64. Index has reached 1.618 extension of the Minute ((a)) - ((b)) and thus cycle from 4/20 low is mature and Minor wave 1 can be called completed at 7533.7. Expect FTSE Index to correct cycle from 4/20 low soon within Minor wave 2 in 3, 7, or 11 swing before the rally resumes. We don't like selling the proposed pullback and expect buyers to appear again when Minor wave 2 pullback is over in 3, 7, or 11 swing.

FTSE Index 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)

FTSE 100 Elliott Wave View: Turning Lower

Short Term Elliott Wave view in FTSE 100 suggests the rally from 4/20 low (7096.6) is unfolding as a zigzag Elliott Wave structure where Minute wave ((a)) ended at 7302.57 and Minute wave ((b)) ended at 7197.28. Subdivision of Minute wave ((a)) is unfolding as an impulse where Minuttte wave (i) ended at 7134.53, Minutte wave (ii) ended at 7104.22, Minutte wave (iii) ended at 7290.82, Minutte wave (iv) ended at 7262.32, and Minutte wave (v) of ((a)) ended at 7302.57. FTSE 100 has since broken above 7302.57 suggesting Minute wave ((c)) has started.

Minute wave ((c)) is unfolding as an ending diagonal where Minutte wave (i) ended at 7280.7, Minutte wave (ii) ended at 7222.81, Minutte wave (iii) ended at 7460.20, and Minutte wave (iv) ended at 7435.64. Index has reached 1.618 extension of the Minute ((a)) – ((b)) and thus cycle from 4/20 low is mature and we are calling Minor wave 1 completed at 7533.7. Expect FTSE 100 to correct cycle from 4/20 low within Minor wave 2 in 3, 7, or 11 swing before the rally resumes. We don’t like selling the proposed pullback and expect buyers to appear again when Minor wave 2 pullback is over in 3, 7, or 11 swing.

If the Index does not do a decent pullback from here to correct cycle from 4/20 low, then the move from 4/20 low could be labelled as a regular 5 waves Impulse Elliott Wave structure in which case we are ending Minor wave 3 at recent high (7533.7) and the Index will do shallow pullback in Minor wave 4 and then extend higher again in Minor wave 5 before ending cycle from 4/20 low and see larger pullback. In both cases, we don’t like selling the Index and expect buyers to appear in the dips in 3, 7 or 11 swings.

FTSE 100 1 Hour Elliott Wave Chart

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Attached Image (click to enlarge)

WXY and ABC Elliott Wave Structure

In the video below, we explain the wxy Elliott Wave structure, often called a double three, double correction, or 7 swing Elliott Wave structure. We also compare this wxy structure with abc structure, explaining the similarities and differences.



Double Three Eliott Wave Structure (WXY)

A double three structure, or also called a double correction, or WXY is a 3 waves corrective structure where the third leg (wave Y) is usually 100% – 123.6% of the first leg (wave X) and not more than 161.8%. The subdivision of wave W is in 3 waves, and the subdivision of wave Y is also in 3 waves, thus it is a 3-3-3 structure.
Zig-zag Elliott Wave Structure (ABC)

A zig-zag Elliott Wave structure (ABC) is very similar to WXY. It’s also a 3 waves structure and the third leg (wave C) is usually 100% – 123.6% of the first leg (wave A), and not more than 161.8%. The difference between the two is in the internal subdivision of the first leg and third leg. In ABC, the subdivision of wave A is in 5 waves and the subdivision of wave C is in 5 waves.
Wavers tend to be familiar only with ABC and label every 3 waves move as ABC. In reality, unless the subdivision of the first leg and third leg is in 5 waves, it’s wrong to label every 3 waves move as an ABC. We hope that this video and article helps to clarify the differences and when to label as WXY and when to label as ABC.
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FTSE Elliott Wave View: Extending Higher


Short Term Elliott Wave view in FTSE suggests the rally from 4/20 low (7096.6) is unfolding as a zigzag Elliott Wave structure where Minute wave ((a)) ended at 7302.57 and Minute wave ((b)) ended at 7197.28. Subdivision of Minute wave ((a)) unfolded as an impulse where Minuttte wave (i) ended at 7134.53, Minutte wave (ii) ended at 7104.22, Minutte wave (iii) ended at 7290.82, Minutte wave (iv) ended at 7262.32, and Minutte wave (v) of ((a)) ended at 7302.57. The Index then pullback and ended Minute wave ((b)) at 7197.28

Minute wave ((c)) unfolded as an ending diagonal where Minutte wave (i) ended at 7280.7, Minutte wave (ii) ended at 7222.81, Minutte wave (iii) ended at 7460.20, and Minutte wave (iv) ended at 7435.64. Index has reached 1.618 extension of the Minute ((a)) - ((b)) and thus cycle from 4/20 low is mature and we are calling Minor wave 1 completed at 7533.7. Minor wave 2 decline from there is proposed complete at 7389.26. The Index has since resumed the rally higher and near term, while pullbacks stay above 7389.26, and more importantly above 7096.6, expect FTSE to extend higher. A break above Minor wave 1 at 7533.7 is needed to confirm the next leg higher has started. Until then, a double correction in Minor wave 2 can't be ruled out. We don't like selling the proposed pullback.

If FTSE breaks below 7389.26, this suggests the Index is still correcting within Minor wave 2 as a 7 swing structure and this would open extension to the downside to the next 100% - 123.6% in 7 swing. In the event that this happens, the Index remains favored to continue the rally higher again after the 7 swing correction is completed as far as pivot at 7096.6 low remains intact.

FTSE 1 Hour Elliott Wave Chart

Attached Image (click to enlarge)

Attached Image (click to enlarge)