CADJPY Daily Timeframe
CADJPY has shown a clear impulse in July 2024. We are now in a massive correction, consisting of 3 major waves, ABC. It appears we have almost completed Wave B and now we are anticipating wave C.
We expect wave C to push up to the corrective highs where we have the 61.8 fib.
Here are some key things to watch:
- Wave Structure: Ensure that Wave B has completed its corrective pattern
- Wave C Confirmation: Look for a strong bullish impulse off the lows of Wave B.
- Volume & Momentum: A rise in volume and bullish divergence in RSI/MACD could confirm Wave C is underway.
Confirmation for Wave C:
Break of Structure (BOS) / Trendline Break
When identifying confirmation for Wave C, a Break of Structure (BOS) or a Trendline Break is one of the strongest signals that the corrective phase is ending.
Break of Structure (BOS) – Key Levels to Watch
Wave B typically forms lower highs and lower lows. A break above the last lower high signals a bullish shift.
Look for a decisive close above the previous swing high on the 4H or daily timeframe. A weak break (with wicks) may indicate hesitation.
A higher low after the break adds extra confirmation.
Trendline Break – Reversal Signal
If Wave B formed a descending trendline, watch for a clean breakout with strong bullish candles (not just wicks).
Retest of the trendline as support after the breakout strengthens the case for Wave C starting.
Trade Idea:
- Watch for Wave C to start using the techniques listed above
- Once entered, keep stops below wave B
- Targets: 107 (500pips), 112 (1000pips)
Goodluck and as always trade safe!
See below for our previous swing setups:
Swing Setup 1
Swing Setup 2
Swing Setup 3
CADJPY has shown a clear impulse in July 2024. We are now in a massive correction, consisting of 3 major waves, ABC. It appears we have almost completed Wave B and now we are anticipating wave C.
We expect wave C to push up to the corrective highs where we have the 61.8 fib.
Here are some key things to watch:
- Wave Structure: Ensure that Wave B has completed its corrective pattern
- Wave C Confirmation: Look for a strong bullish impulse off the lows of Wave B.
- Volume & Momentum: A rise in volume and bullish divergence in RSI/MACD could confirm Wave C is underway.
Confirmation for Wave C:
Break of Structure (BOS) / Trendline Break
When identifying confirmation for Wave C, a Break of Structure (BOS) or a Trendline Break is one of the strongest signals that the corrective phase is ending.
Break of Structure (BOS) – Key Levels to Watch
Wave B typically forms lower highs and lower lows. A break above the last lower high signals a bullish shift.
Look for a decisive close above the previous swing high on the 4H or daily timeframe. A weak break (with wicks) may indicate hesitation.
A higher low after the break adds extra confirmation.
Trendline Break – Reversal Signal
If Wave B formed a descending trendline, watch for a clean breakout with strong bullish candles (not just wicks).
Retest of the trendline as support after the breakout strengthens the case for Wave C starting.
Trade Idea:
- Watch for Wave C to start using the techniques listed above
- Once entered, keep stops below wave B
- Targets: 107 (500pips), 112 (1000pips)
Goodluck and as always trade safe!
See below for our previous swing setups:
Swing Setup 1
Swing Setup 2
Swing Setup 3
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Want more chart ups like this? Click the links below:
Free Telegram: t.me/Wicktator
Forex VIP: t.me/WicktatatorVIP_bot
Free Telegram: t.me/Wicktator
Forex VIP: t.me/WicktatatorVIP_bot
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.