In this technical article, we’re going to take a quick look at the Elliott Wave charts of the FTSE index.  As our readers know FTSE reached our target zone in the June cycle at 639.9-5231.02 area and found buyers. FTSE is another instrument that has given us a nice rally from the Blue Box area recently. The index ended the cycle from the June 8th peak as the Double Three pattern. Which is also know as 7 swings. Further in the article, we’re going to explain the forecast and Elliott Wave Pattern.

Before we take a look at the real market example, let’s explain the Elliott Wave Double Three pattern.

Elliott Wave Double Three Pattern

Double three is the common pattern in the market these days, also known as the 7 swing structure. It’s a reliable pattern which is giving us good trading entries with clearly defined invalidation levels and target areas.

The picture below presents what the 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 a lower degree, or alternatively, they could have W, X, Y labeling.

FTSE 4 Hour Elliott Wave Analysis 11.02.2020

In the chart below we can see clear 7 swings in the cycle from the 6502.6 high. Double three pattern has inner labeling: (W)(X)(Y) blue. Each leg of the pullback has a corrective structure, when (W) leg has ABC inner labeling, while (Y) leg is double three WXY red. At this moment we can count clear 7 swings down from the June 8th peak. Pull back has already reached equal legs zone at 639.9-5231.02 area. Consequently, turn higher can happen at any moment. We don’t recommend selling anymore and expect a rally from the blue box to happen soon. The proposed leg down may or may not happen.

(Click on image to enlarge)

FTSE 4 Hour Elliott Wave Analysis 11.10.2020

FTSE keeps finding buyers and ended the cycle from the June peak right at the blue box: 639.9-5231.02 are.  The pullback ended at 5524.47 as Double Three and we got a nice rally. Short term cycle from the 5524.47  low is having impulsive sequences. Consequently, we expect further rally once (2) blue pullback completes.

(Click on image to enlarge)