XAGUSD rise ahead
XAGUSD rise ahead.The current analysis strategy uses ATR axes. The idea is to calculate the daily ATR data during a particular wave phase, or extract it from some ATR-based indicator, and then link these data on the chart. It is very similar to traditional peak-to-valley techniques, but these techniques are more visual in nature, as there are no sideways prices. They are visualized by us traders after connecting the two peaks, for example. In contrast, the ATR axes can be calculated accurately since the slope of the axes depends on the rate of change of the ATR of the underlying wave sequence. Since the difference is only in the training and not in the interpretation, we can use similar concepts and strategies here. For example, parallel channel, triangle, or flag shape...etc. Let's return to the analysis. Three ATR axes are shown in the graph. The yellow ATR axis is over in my opinion, as the uptrend has retraced and thus consolidated the support for further uptrend. The next area is indicated by two grey ATR lines. They form a triangle. As I mentioned before, it is advisable to follow the triangle formation strategy used by peak-valley theories here. Accordingly, I currently expect an upward breakout. The target price rule for the triangle strategy is twice the size of the vertical axis of the triangle. In our case, this could be 28.34 usd. In the case that we start a LONG position from the current level and count with the STOP level shown in the figure, we can trade this trade with a risk reward level of 3.1.
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