Guy's remember that I wrote about the likely corrective structure for USDJPY because the first impulse had not the characteristic of a wave 1 (not saying we can't go higher but we analyze high probability). Although we saw a bullish impulse from 100 zone we have to keep in mind that a wave C can be impulsive as well, so this is why drawing lines alone isn't enough. Short term look for the way of least resistance as always. Let price consolidate (possible wave 2) and sell the continuation. If we see a reversal (bullish impulsive reversal) we simply adjust again. Keep it safe and simple so the current market will give you lots of return on capital.
I slightly adjusted the wave count, concept remains the same.
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Kommentare
forexstock100
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I think it is making leading diagonal but I don't know we need more confirmation
TimStuyts
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This is what you mean?
If that's the case and I have that scenario as well since we were not able to break below 100.9 again, then we might have a solution for the 4 hour time frame as well by means of another leading diagonal. However on 4 hour time frame the structure will in that case be 3-3-3-3-3.
But I will prepare a new post for this so I can give some context.
forexstock100
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Yes , but how come leading diagonal structure is 3-3-3-3-3 which is exclusive to ending diagonal and triangles . Am I right ?
forexstock100
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Tim, why you labelled the leading diagonal on 4 hour time frame as a-b-c-d-e since it is impulsive wave pattern " leading diagonal " and should be labelled 1-2-3-4-5 as you did with the other leading diagonal on 60 minute time frame .
Thanks for sharing your nice ideas .
TimStuyts
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I just posted a new post, both are valid ways to count a leading diagonal. 1-2-3-4-5 is just more common. Let's see how the 1 hour time frame plays out first. Thanks for your input, you made me take a closer look at it;-)!
forexstock100
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Thanks for sharing your great ideas, I want to ask you about putting profit targets, can I hold the position until I see divergence on lower timeframe as a good sign of trend reversal or at least correction , so I close my trade . I mean , is divergence a reliable indicaion or sign that " it is enough , it is time to get out " ?
TimStuyts
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I personally only use divergence as an indication, I always look for confluence. Because otherwise you often will cut your profits short.
forexstock100
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Expanding leading diagonal now .
TomPower
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Wasn't that 5 of 1 the longest wave. Shouldn't 3 be the longest
TimStuyts
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No a wave 3 can't be the shortest wave. However it doesn't have to be the longest. Let's see whether we see a reversal sign on lower time frames then I will update the post.