CADCHF Elliot Wave Short Setup: Triangle inside Triangle
Here is an update on CADCHF.
A few weeks ago I published an analysis suggesting a triangle pattern could lead to a sell-off on CADCHF. Since then we've experienced a further contraction in price action, but everything is visible now and still in line with the Elliot Wave principle.
One of the guidelines for a Triangle pattern is that wave "e" of the triangle can also sub-divided to a triangle and that's what happened in the case of CADCHF as you can see in the chart above.
This gives us a high probability set up with a high risk to reward ratio. Price has already triggered the confirmation level so we could see a rapid sell-off for the rest of the week.
A few weeks ago I published an analysis suggesting a triangle pattern could lead to a sell-off on CADCHF. Since then we've experienced a further contraction in price action, but everything is visible now and still in line with the Elliot Wave principle.
One of the guidelines for a Triangle pattern is that wave "e" of the triangle can also sub-divided to a triangle and that's what happened in the case of CADCHF as you can see in the chart above.
This gives us a high probability set up with a high risk to reward ratio. Price has already triggered the confirmation level so we could see a rapid sell-off for the rest of the week.
