Three Wave - ABC Pattern
Compared to Impulsive waves, 'corrective waves' are harder to spot.  **Wave A** This is usually at the end of the 5-wave pattern and fundamental news is typically still positive. Many analysts see this as a mild correction ...
Compared to Impulsive waves, “corrective waves” are harder to spot. 
Wave A This is usually at the end of the 5-wave pattern and fundamental news is typically still positive. Many analysts see this as a mild correction and buy in hoping for a bull run continuation. Again new and inexperienced traders are more likely to fall in to this trap. Features of Wave-A is an increase in currency pair volume and higher volatility (in the options markets). Wave B In most cases this is the last effort by those traders who believe it’s a ongoing bull run. The last puff of upward movement before the price goes down again. You can see that wave-B forms the right shoulder of the “head and shoulder” patter. Volumes are lower again and fundamental factors are no longer supporting the technical. Wave C By this time everyone knows there is no further momentum in the currency pair. There is mass selling and the bear has a strong grip on the downward trend.
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Three Wave - ABC Pattern
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