Elliott Wave Pattern: Double Three (WXY) Structure
03/26/2015 9:00 am EST
Citing a currency pair example for support, the staff at ElliottWave-Forecast.com highlights what is arguably the most common and important pattern in New Elliott Wave Theory—the Double Three (WXY) pattern—and illustrates how it can give good trading entries with clearly defined target areas.
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:
AUD/USD 4-Hour Update—February 18, 2015: We assume that pair is doing Double Three pattern 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 pullback, 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.
By the Staff of ElliottWave-Forecast.com