The Euro is about to start a weekly time frame Elliott Wave Theory flat correction. There are many types of corrections that can play out but the most likely correction is the flat correction because it is mostly a flat moving to the right type of move. If you don’t know Elliott Wave its ok. You would at best call this a rectangular range. Don’t be in a rush to know everything in a few weeks but if you want to learn Elliott wave there is only one person in my opinion who can teach it in an easy to understand way. That person is Ryan of Trendlizard. Go to youtube and watch his video titled “The Worlds Simplest Explanation of Elliott Wave Theory.”
By the way here is the truth about price action. Elliott Wave Theory is the absolute DNA of price action on any time frame of any asset but if you don’t learn all the basics about price action you wont realize this fact by studying Elliott Wave.
Elliott Wave is based on human herd mentality…as price trends it will be followed by a correction pattern then continue the trend. The Elliott Wave is a repeated series of three trending moves followed by a corrective pattern totaling five waves and then a repeat of the pattern. It goes like this wave 1 Trend, wave 2 correction, wave 3 trend, wave 4 correction and wave 5 trend. This is then followed by a long correction pattern before the process repeats it’s self.
The Flat correction of the Euro will give us lots of pips to earn money from. Leg A will give us approximately 400 pips short then leg B another 400 pips long and then leg C which is normally the deepest move of the correction down into the 61.8 fibo level giving us approximately 460 pips short then it will reverse and give another 460 pips long plus more as the trend resumes!
In closing you need to know that Ryan and many other traders do no recommend trading the corrective patters because of unpredictable volatility however there are many veteran traders who will trade them. If we see them as a range we know they can be traded.