Forex Education: Trading Elliott Wave Diagonals
In this webinar recording from March 14, we dug into the diagonal pattern, what it ideally looks like and rules associated with it.
- Diagonals subdivide as 3-3-3-3-3
- Each wave of the 5 waves above is a zigzag
- Wave 2 cannot retrace more than 100% of wave 1
- Wave 3 is not the shortest of waves 1,3,5
(Do these look similar to our impulse and zigzag lessons?)
5. Diagonals can form in these positions: Waves 1, 5, A (of zigzag), C (of flat or zigzag)
There are some similarities and differences between diagonals and impulse waves. For example, both are motive waves and point in the direction of the immediate trend. However, common differences include their structure and how wave 4 interacts with wave 1.
Lastly, we reviewed how to trade the diagonal.
See how Elliott Wave Theory is applied in the current environment in the main markets. Join Jeremy in the US Opening Bell webinar on Mondays.
If you cannot make the live webinars, but wish to learn more about Elliott Wave theory, grab our beginning and advanced Elliott Wave guides.
Missed the first five webinars in this series? We began with Trading Elliott Wave Impulses.
---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
Follow me on Twitter at @JWagnerFXTrader .
See Jeremy’s recent articles at his Bio Page.
To receive additional articles from Jeremy via email, join Jeremy’s distribution list.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.