Elliott Wave Pattern: Double Three (WXY) Structure
Double three is the most important pattern in New Elliott Wave theory and probably the most common pattern in the market these days, also known as 7 swing structure.
It's a very reliable pattern which is giving us good trading entries with clearly defined invalidation levels and target areas.
The picture below presents what Elliott Wave Double Three pattern looks like. It has (W), (X), (Y) labeling and 3, 3, 3 inner structure, which means all of these 3 legs are corrective sequences. Each (W) and (Y) are made of 3 swings, they're having A, B, C structure in lower degree.
Now, let's take a look at some real example:
$AUDUSD H4 update 18/02/2015: We assume that pair is doing Double Three patern in wave ((x)), correcting the cycle from 0.82977. As you can see wave W (red) has 3 swings ((w)), ((x)), ((y)). X (red) is deep pull back which also has 3 wave structure, and current view suggests we still need another push higher toward marked area to complete Y (red) as 3 wave structure. At that time our clients were prepared to sell the pair at 0.78911-0.79499 area.
$AUDUSD H4 update 10/03/2015: Wave ((X)) recovery has ended as Double Three Elliott Wave Pattern at proposed area and we got expected decline.
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