Momentum Extremes All Round!

By: Enda Glynn | Wed, May 17, 2017
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4 Hours

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My Bias: short in wave 3 blue.

Wave Structure: downward impulse wave 1, 2 blue

Long term wave count: lower in wave 3 blue

Important risk events: EUR: ECB President Draghi Speaks. USD: Unemployment Claims, Philly Fed Manufacturing Index.

Good evening to you all, hope you had a great day.

Well, If you ever wanted to witness what an overbought extreme looks like, todays EURUSD action is a prime example.

I have been surprised by the severity of the rally over the last few days, but it has done very little to change my mind on the wave count.

What you are witnessing here, may well be the final high in EURUSD for many years to come.

We have had extension after extension in this wave [c], but every indicator is boiling right now!

The 4hr RSI reached a 1 year high today, at 90.41,

The price also tagged the upper trendline of the rising trend channel in wave (c) brown.

The price looks like it is going to drop like a stone very soon.

Of course it is almost impossible to resist the urge to buy when the herd is charging like this.

But, when I step back, and take in all the information on display, I reach the exact same conclusion, EURUSD is now a bubble looking for a pin.

I am actively on the lookout for an impulsive decline and the formation of a lower high as the sign the market has turned.

The high at 1.1299 is the invalidation line for the current immediately bearish view.


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4 Hours

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My Bias: market topping process ongoing

Wave Structure: Impulsive 5 wave structure, possibly topping in an all time high.

Long term wave count: Topping in wave (5)

Important risk events: USD: Unemployment Claims, Philly Fed Manufacturing Index.

Another rip-roaring day in the stock market! I was expecting a decline today,

But not to that degree!

I have relabelled the action with my next best interpretation,

That is;

the rally off wave [iv] green has now traced out a five waves up in wave [i] grey,
and three waves down in wave [ii] grey.

This opens up the possibility for a serious advance in wave (iii) grey to come our way soon.

20636 was the 61.8% retracement of wave [i] grey, so we are right about the area for a typical second wave retracement.

I will be watching for tomorrows reaction to the unemployment claims figures, If I am correct here.

A higher low off wave [ii] will create a nice opportunity to ride wave [iii] to new highs


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4 Hours

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My Bias: Long towards 1550

Wave Structure: ZigZag correction to the upside.

Long term wave count: Topping in wave (B) at 1550

Important risk events: USD: Unemployment Claims, Philly Fed Manufacturing Index.

What a difference a day makes.

I have been cautiously bullish over the last week or so, And then in one foul swoop, the market rockets into a clear impulsive form.

just like magic!

It is still hard to decipher the internal wave form of the recent overlapping upside drift.

After todays rally, it looks like the market has been lurching higher in a series of wave 1,2 rallies off the lows.

This leads me to believe that the price will likely continue to unfurl higher above resistance at 1271.

In order to create a completed five wave structure to the upside.

Todays rally could well have turned the tide in this market.

The long awaited rally in wave (iii) blue has just arrived.

By Bullwaves for


Enda Glynn

Author: Enda Glynn

Enda Glynn

Enda Glynn

I class myself as an Elliott wave trader now, but that's not how I started out though! It took me a long time and a whole lot of pain, to finally understand what drives the price and how to use Elliott Wave correctly!

I have been trading for years and I have tested every trading system and strategy under the sun! I used to pick entry points at random based on emotion or news events or something I heard on TV! It did not take long to destroy my capital! I have blown out my account balance before, and I had to start again,

from scratch!

Believe me, I am well acquainted with failure in trading! Im sure that the above scenario is pretty familiar to you too. We have all been there. About 10 years ago I discovered The Elliott wave Principle and its method of market analysis. Since then, I have spent years learning, testing and trading, using the wave principle as the backbone of my analysis. I even went to college to study macroeconomics and econometrics. I graduated with honours degree back in 2012. The financial market knowledge and statistical edge I gained after my degree added another level to my trading. The difference in my trading approach using the wave principle, compared to before, is like night and day.

The price started to move "my way" more and more often. The wave model, offers me a lens to view market action through, which no other form of analysis can do. Elliott wave analysis, helps me answer four key questions when I am contemplating a trade:

• What direction the price is trending.
• How far is this trend likely to go.
• Where can I enter a trade with the best risk reward ratio.
• And most importantly, at what point am I definitely wrong?!

The wave principle helps me improve my trade entry, tighten up my money management and in turn increase profitability. Seeing the waves unfold before your eyes is a very rewarding experience, It is almost like peering into the future! That is how the wave principle helps my trading, and that is why the wave principle will improve your trading. It took a long time to finally master Elliott Wave Principle. After over a decade of hard work, research and learning I can call myself an expert in the field. I regularly contribute to major trading communities at FXStreet, Forex Factory, Traders Planet. I am a chief Elliott Wave analyst at HumbleTraders.

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