I just started studying Elliott Wave Theory today and was shocked to see what I thought was a classic setup in USD/JPY. It should drop a bit more from where it’s at now, but anyway… The reason I say classic is that if I’ve identified the wave properly (a BIG if), wave 2 was about 61.8% retracement of wave 1, wave 4 is about 38.2% of wave 3, AND wave 5 has formed a textbook descending triangle (almost matching the example in the tutorial exactly). All this means that USD/JPY is set for a big reversal, possibly up to around 95.50 to 96.00 (based on approximate 61.8% retrace of full wave).
Since I don’t know what I’m doing, I don’t have the geometric shapes and I am likely not labeling in the correct fashion. Nevertheless, I was just hoping that someone who actually understands EWT could take a look at this and let me know what they think (you can ignore my exit labels, as I was doing that for something else. BTW, I’m using a D1 chart.
I appreciate your time. Also, if you have the time, could you show me how you would draw it? It will help me in my education. Thanks!
