Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of Soybeans Futures ( $ZS_F ) published in members area of the Elliottwave-Forecast . As our members know, Soybeans Futures is showing lower low sequences in the cycle from the May peak. Recently we got recovery that has unfolded as Elliott Wave Double Three pattern that has given us opportunity to enter short trades. In further text we’re going to explain the forecast and Elliott Wave Pattern and trading strategy.
Before we take a look at the real market example, let’s explain Elliott Wave Double Three pattern.
Elliott Wave Double Three Pattern
Double three is the common pattern in the market , also known as 7 swing structure. It’s a reliable pattern which is giving us good trading entries with clearly defined invalidation levels.
The picture below presents what Elliott Wave Double Three pattern looks like. It has (W),(X),(Y) labeling and 3,3,3 inner structure, which means all of these 3 legs are corrective sequences. Each (W) and (Y) are made of 3 swings , they’re having A,B,C structure in lower degree, or alternatively they can have W,X,Y labeling.
Now, let’s take a look what Elliott Wave Double Three Pattern looks like in the real market.
Soybeans Futures ( $ZS_F ) 1 Hour Elliott Wave Analysis 8.13.2021
Soybeans is giving us X red recovery that is unfolding as Elliott Wave Double Three Pattern. It’s having ((w))((x)) ((y)) inner labeling. The main characteristic of Double Three is that all 3 legs has corrective sequences. First leg Wave ((w)) has Zig Zag Formation -535 structure. Then we got 3 waves pull back in ((x)) connector, when now doing last leg up ((y)) which is also unfolding as Zig Zag Pattern. Recovery looks incomplete at the moment, suggesting another leg up. The Commodity is looking for 1381’7-1414’5 area, to complete Double Three . Although expecting more upside in near term, we recommend members to avoid buying and sell the commodity at marked blue box area. We like to be sellers at the blue box zone. Invalidation level for the trade is break above 1.618 fib extension (1381’7).
You can learn more about Elliott WaveDouble Three and Zig Zag Patterns at our Free Elliott Wave Educational Web Page.
Soybeans Futures ( $ZS_F ) 1 Hour Elliott Wave Analysis 8.20.2021
Sellers appeared at the blue box and we got good reaction from there. The decline from the blue box reached 50 fibs against the ((x)) connector, as a result short positions from the blue box are Risk Free and partial profit are taken. At the moment we see recovery completed at 1386’7, however if mentioned pivot gives up we could see larger recovery. Now we are about to complete short term cycle from the 1386’7 peak, expecting to see bounce again. Anyway, as far as the price stays below 1386’7, short positions remain active. As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a reaction.
Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.
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