An overview of the
currency markets by 
Welcome to Part 2.
We’re looking at this last movement as a potential 5 wave movement up. Although it may not be the cleanest 5 wave movement, because of the overall bullish sentiment, we’re going to show you a potential outcome of this current movement.
If this is a 5 wave movement up, then there are 2 major points we’re looking at (see chart).
Here is how you incorporate numbers into this current trade - and this is all from general Elliott Wave theory. Also, this is not a complete list, but enough to show you how to potentially look for price projections/targets.
1) Wave 4 cannot retrace to the area of Wave 1 - hence, we have a line there at the top of Wave 1. If it goes below this line, this will invalidate this forecast.
2) Wave 3 cannot be the shortest wave - well, it’s definitely longer than Wave 1 so this passes.
3) Wave 4 will most likely retrace between 38.2 - 50% of Wave 3. So, if you draw a Fibo from the start of Wave 3 to the end, you’ll see that:
38.2% - 1.4687 (which it crossed)
50% - 1.4663
So, this is the major one here. You can look for a pull back to the areas listed above (one of which has already hit) and look for a potential trade entry.
Again, there are some things that don’t really fit with a nice 5 wave movement, so be sure to apply your own analysis and technicals in different time frames to support any trade entries.
Good luck with your trading and have a happy weekend.
