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Recognition of the active wave
The active wave is the nearest market movement to the actual time of our trading with a
height greater than 40 pips. In order to find the active wave from the candlestick chart
the following steps are to be done:
First identify all possible upward and downward waves that seem to be close to or greater
than 40 pips on the candlestick chart
Wave 1:
High = 1.3493; Low = 1.3439;
Height = High – Low = 1.3493– 1.3439= 0.0054 = 54 pips
Wave 2:
High = 1.3495; Low = 1.3448;
Height = High – Low = 1. 3495– 1. 3448= 0.0047 = 47 pips
Wave 3:
High = 1.3499; Low = 1.3450;
Height = High – Low = 1. 3499– 1. 3450= 0.0049 = 49 pips
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