A reader has asked about a possible fifth wave extension in USD/CHF. (refer comment by Dolphin). We are currently trading at 1.2217. I see some solid supports at 1.2000 levels and tehn some more at 1.1850 levels just now. These supports could only move higher as we stay better bid on the dollar. I strongly recommend that we should look at the bigger picture first in order to get a sense of how high a rally could go, (or how deep a decline) and then figure out how to count the waves. Of course, the end result of all our counting should be to initiate profitable low risk trading ideas, which we should execute, at least with a small position. Otherwise, we will end up as mere arm-chair analysts! Anyway, here is the monthly chart of the USD/CHF and I am already making the sin of looking only at the last 5-wave decline !! Still, that gives us an idea of how high the correction could go. Enjoy! Ramki
