Posted on April 24th, 2008 at 8:11 AM
By breaking the Wave 3 regression trend channels the Euro has begun what looks to be a Wave 4 correction on the Daily Chart. If this is the time frame that you typically trade this may look like a great chance to short as we can have a retracement down to as much as 1.5043. However, our Elliott research shows us that selling into a Wave 4 pullback is a high risk move and one that should be avoided as Wave 4 is not one of the more predictable Elliott Waves. If the daily chart is you only timeframe to trade the smart play is to wait out the retracement and look to go long once Wave 4 is complete, in Advanced GET we look for the Elliott 5/35 Osc to return to zero as a minimum and we are not at that point yet.
