Elliott Wave Analysis On German DAX And EURCAD

By: Gregor Horvat | Mon, Nov 14, 2016
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German DAX

DAX has turned lower, meaning it can be ideally heading down for wave c-circled that belongs to a flat correction in wave 2 of a higher degree. In a flat pattern you will typically see that price will retrace and then bounce from end point of wave a. In our case that comes in at 10560, but previous swing high and 38.2% are slightly lower, near 10500. As such, 10560-10500 area can be like a magnet for the short-term moves from where we will expect a bounce higher this week.

German DAX, 1H

DAX 1-Hour Chart


EURCAD

Any gaps will very rarely stay open, so despite break to a new swing low on the EURCAD, we assume that pair can make a complex correction with a possible flat pattern in wave 2. As such, 1.4760 resistance can be tested before strong wave down unfolds; ideally wave 3.

EURCAD, 1H

EUR/CAD 1-Hour Chart

A Flat is a three-wave pattern labeled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott pattern.

Basic Flat Pattern:

Idealized Elliott Wave Flat Pattern

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on: SafeHaven.com, FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At www.ew-forecast.com he helps clients and educate them about the Elliott wave prinicple and how to label and track unfolding patterns in real time.  His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators.

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