EURUSD. Possible retracement to 1,05 due to a truncated fifth
Hey traders!
The reasons that make me think this scenario can happen are:
1) The extension is produced on the 3rd wave so:
a) 3rd wave is 161,8% of Fibonacci Retracement of wave 1.
b) 5th wave is 38,2% of Fibonacci of the stretch from wave 1 to wave 3.
2) Possible truncated fifth due to the 5th wave did not arrived to line 1 - 3.
** But wave 1 is not really small compared to wave 3, it does not shows a perfect theorical scenario with wave 3 extension.
In conclusion, with the 3rd wave extended and the truncated fifth a huge correction can happen and overcome the theorical zone of correction of this kind of scenario (correction finishes at zone of wave 4), and arrive to the zone of wave 2.
What do you think guys?
Any suggestion?
Thanks, and good trading to all!
The reasons that make me think this scenario can happen are:
1) The extension is produced on the 3rd wave so:
a) 3rd wave is 161,8% of Fibonacci Retracement of wave 1.
b) 5th wave is 38,2% of Fibonacci of the stretch from wave 1 to wave 3.
2) Possible truncated fifth due to the 5th wave did not arrived to line 1 - 3.
** But wave 1 is not really small compared to wave 3, it does not shows a perfect theorical scenario with wave 3 extension.
In conclusion, with the 3rd wave extended and the truncated fifth a huge correction can happen and overcome the theorical zone of correction of this kind of scenario (correction finishes at zone of wave 4), and arrive to the zone of wave 2.
What do you think guys?
Any suggestion?
Thanks, and good trading to all!