the importance of 3 waves …

I have had the unique opportunity to train under Connie Brown of http://www.aeroinvest.com. Frankly, she’s probably one of the best technical traders/analysts out there.  She also told me to never count a wave again …!  and if your going to count – just learn the corrective moves and look/watch for them.

folks, that’s where the importance of 3 waves comes into play.  particularly in the YEN and the EURO vs USD.

Here’s the YEN:

followed by another 3 wave movement – in this case the waves were symmetrical an exactly the same:

so now we have carved out a 3-3-? correction.  The “?” mark is for the last wave of this sequence. we have finished “a” in 3 waves and we have finished ‘b’ in 3 waves so now “c” HAS TO BE 5 waves ….it appears we broke down from the triangle a-b-c-d-e for 4 and we are in the 5th and final wave of this correction which I am labeling 2 or B and then off the $$$ goes against the YEN.

EURO vs USD – here’s the triangle look:

else – we have a more complex FLAT working ..

again, either way, I think that the EURO is STILL bearish and this complex correction is coming to an end …

the POUND is testing the 31 year trend line polarity – right now.

also, remember to watch this level on the LOONIE!

Aussie has been a monster …no pullback to even get in it, yet.

but here’s the issue … look at the 3 waves UP  and then 3 waves down and then a near exact 1.618*a=c wave relationship that shows an expanded flat pattern.  We’ve “bounced” almost a 1000 pips … but is that it and the down trend resumes?

so, as you can see, the USD is at a very critical juncture.  IF all these patterns WORK then a dollar rally should begin – soon.  Else, we have more dollar weakness coming.

Author: BART

BART is a CMT and an expert a "advanced" pattern recognition used w/in the intermarket analysis discipline. He's also an accomplished Business Development Executive providing solutions to a myriad of business markets. View all posts by BART