USDCAD - Wave W and X of Double Three Pattern

A Perfect Combination

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When a correction is in play, all you can do is wait it out. We sometimes get caught up in trying to predict or forecast.

The funny around Instagram is that new traders want to be right all the time but experienced traders want to make money. Everybody wants to make money, though. For me; I always wanted to go deeper than that and find out what makes this thing tick. Meaning, the ends and out. I just always felt like it was a science to this madness.

Within this correction is thought of to be a combination pattern or double three. Combined are Flats, Zigzags, and Triangles pattern to make up a larger correction.

30 min Chart Wave (W) and (X) 05/03/20 – 05/04/20

This particular reversal began with a five-wave move down eventually making a three-wave move to the upside forming Wave A of (W), the start of this pattern. Wave B of (W) is a running flat pattern of itself. Wave C of (W) is just a five-wave pattern to complete the ZigZag.

Wave (X) is an ABC Zigzag corrective pattern to the upside, this even breaks support having you thinking a reversal is on.

30 min Chart Wave (Y) 05/04/20 – 05/06/20

Now, it looks like the continuance is on to the downside. As I am writing this news comes out on the Trade Balance on Canada better than expected. This pushing the USD even lower to the CAD. Now, I’m a bit more certain that I am on the right side of the trade.

After Wave (Y) is completed, which is an ABC, 5-3-5 pattern. A five-wave move is made to the upside with Completing Wave C, making a new high completing a large ABC Zigzag pattern.

Corrective wave is more likely to be overlapping in nature.

USDCAD - ABC ZigZag Pattern
120 min ABC ZigZag Pattern 04/30/20 – 05/06/20