Triangle on USD/CHF points higher

September 2, 2016 09:01 AM
Elliott Wave Analysis: USD/CHF

On the 4-hour chart of U.S. dollar/Swiss franc (USD/CHF) currency pair, we are looking at a triangle count, which now shows wave E) in progress, after recent three-wave move to the upside was recognized as wave D). As such, this new sharp reversal down may be wave A, the first leg of a three-wave set-back in wave E). A probable reversal zone and support area for this wave E) could then be around the 61.8 Fibonacci ratio.

USD/CHF, 4-hour

USD/CHF, Daily


A triangle is a common five-wave pattern labeled A-B-C-D-E that moves countertrend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five-wave affairs that subdivide into 3-3-3-3-3.

A basic triangle pattern: 

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and He also is founder of forex services on provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: