Strong Moves Often Mean One Thing: Wave 3!
Hello traders! If you’ve been watching EUR/USD, you’ve probably noticed the recent explosive move higher. When you see a sharp, powerful trend like this, there’s a good chance you’re looking at a third wave in Elliott Wave theory. And guess what? That’s exactly what seems to be unfolding here.
Wave-by-Wave Breakdown:
Wave 1: The first push up—this sets the tone for a potential new trend.
Wave 2: A corrective pullback that held its ground, acting as the calm before the storm.
Wave 3: Boom! This is where things get exciting. Wave 3 is usually the strongest, most aggressive move in an impulse wave. In EUR/USD, we’ve seen an extended and powerful run, confirming the textbook characteristics of a Wave 3.
Wave 4 (In Progress): After that big Wave 3, we’re seeing a pullback—a classic Wave 4 correction. This is where many traders sit back and wait.
Why This Matters:
Once Wave 4 completes, we could be looking at Wave 5, the next leg higher. While Wave 5 might not always be as explosive as Wave 3, it’s often a high-probability setup for trend continuation traders. If Wave 4 stabilizes near key support zones (watch 38.2% or 50% retracements of Wave 3), Wave 5 could be a clean move higher.
Actionable Tips for Traders:
Watch for signs that Wave 4 is ending: slowing momentum, bullish reversal candles, or support holding.
Use tools like RSI and MACD to spot hidden bullish divergence as a clue.
Plan entries above minor resistance levels, and keep stops tight below Wave 4’s low.
Final Thoughts:
Powerful moves like Wave 3 grab attention—but it’s often the Wave 5 trade that gives us a structured, high-probability opportunity. Stay patient, stay focused, and let the waves guide you!
If you found this analysis helpful, give it a like and follow for more real-time wave breakdowns!
Hello traders! If you’ve been watching EUR/USD, you’ve probably noticed the recent explosive move higher. When you see a sharp, powerful trend like this, there’s a good chance you’re looking at a third wave in Elliott Wave theory. And guess what? That’s exactly what seems to be unfolding here.
Wave-by-Wave Breakdown:
Wave 1: The first push up—this sets the tone for a potential new trend.
Wave 2: A corrective pullback that held its ground, acting as the calm before the storm.
Wave 3: Boom! This is where things get exciting. Wave 3 is usually the strongest, most aggressive move in an impulse wave. In EUR/USD, we’ve seen an extended and powerful run, confirming the textbook characteristics of a Wave 3.
Wave 4 (In Progress): After that big Wave 3, we’re seeing a pullback—a classic Wave 4 correction. This is where many traders sit back and wait.
Why This Matters:
Once Wave 4 completes, we could be looking at Wave 5, the next leg higher. While Wave 5 might not always be as explosive as Wave 3, it’s often a high-probability setup for trend continuation traders. If Wave 4 stabilizes near key support zones (watch 38.2% or 50% retracements of Wave 3), Wave 5 could be a clean move higher.
Actionable Tips for Traders:
Watch for signs that Wave 4 is ending: slowing momentum, bullish reversal candles, or support holding.
Use tools like RSI and MACD to spot hidden bullish divergence as a clue.
Plan entries above minor resistance levels, and keep stops tight below Wave 4’s low.
Final Thoughts:
Powerful moves like Wave 3 grab attention—but it’s often the Wave 5 trade that gives us a structured, high-probability opportunity. Stay patient, stay focused, and let the waves guide you!
If you found this analysis helpful, give it a like and follow for more real-time wave breakdowns!
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.
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.