The Truth and the Periphery: Dollar Elliott wave Pattern Forms Symmetrical Elliott Channel

The Truth and the Periphery: Trading the Elliott Wave

By TheMarketDetective.com

Dollar Elliott wave Pattern Forms Symmetrical Elliott Channel

This is an update of the Elliott wave count of the dollar since the run up from 81ish. The most interesting thing to happen since my last Elliott wave count is that I re-calibrated the regression trend line to the new high and it produced a nice Elliott channel with Elliott waves 2&4 bouncing off the bottom of the channel at one standard deviation lower, and Elliott waves 1&3 scraping the top of the channel one standard deviation higher.

Overhead, the upper channel of the regression trend line intersects perfectly with the 1.618 Fibonacci extension of wave1which is a common ratio for an Elliott wave set completion, and has been the projected completion target for several months.

However, looking at the wave substructure one degree lower for the Elliott wave set up from wave 4, it is difficult to identify a five wave set completing at this intersection. More likely, wave iii of 5 will complete at this target, or an even larger set will unfold and merely pause at this key Fibonacci level.

I have identified alternate completion targets based on Fibonacci extension pivots and marked them with red arrows. More of the price pattern needs to unfold to gain a better perspective of the wave count up from Elliott wave 4.