Quote:
|
Originally Posted by Summerset
Analysis:-
Typically, we are commencing on a 3 wave correction, pending a 5 wave progression on weekly. Because the correction, is going to be as complex as they come. We will not concentrate on the wave form or count, but on its ultimate Fib expansions.
In order to project the ultimate correction's Fibonacci projections, we need to detect & confirm the 1st complete down leg (Wave-A) of the correction, to throw extensions from. We will therefore move to a smaller time frame to break up the weekly candles
Daily:- (See Daily Chart)
Wave-3 is a confirmed extension (1.618 x wave-1), that should be double retraced. Once by current Wave-4 (down), then a tranculated Wave-5 up. And another ABC correction down (the 2nd retracement that will make a double ).
Typically too, wave-4 should retract to top of Wave-1. (3720 zone shown).
Note that Wave-2 was a flat. So we expect the start of Wave-4 to be a simple or double Zigzag first.
To project its bottom we need leg "A" of this zigzag to complete. (lower lows on daily must cease to be made) and leg "B" should commence to a Fib retraction of "A".
Currently this is not the case, as a new low of 4015 was made to day.
Once a low for "A" is established, we will take a fib projection of 1.618 from "A" top to its bottom, and therefore forecast "C" (our long entry zone). Currently with respect to the lows recorded, the 1.618 projection of "A" stands ideally at Wave-1 top (3720). This is yet not confirmed however, until "A" ceases to make lows
Once a low is made for "A" too, we will sell 0.618/0.38 of "A" for 3720 "C" projection
We will also sell the close of the day that closes below the low of the high candle that marks "B"'s top
We will add to our sells on a break of the established "A" bottom.
All to target the 1.618 Fib extension of "A" of course
We will be using the WSI to confirm our short entries, and calling the entries in real time on the thread.
We expect to reverse at 3720, provided the daily WSI confirms, or at a max of 3440 (Long term median on the weekly chart) also on a signal confirmation of the WSI too |
Sell Market (4204) at 1% Exposure. Stop at 4290, Limit Open for now.
We believe a bottom has formed for leg"A", and leg "B" has concluded, and should be giving in to a zigzag or flat "C" coming. That's why the limit is open for now.
4hr momentum is turning on our side