Here I have utilized the the , Geo's Off-Set Rule, and Fib clusters.
- Within the Wolfe's 1-2 and 2-3 points you must look out for an pattern which we clearly have stated here. Points 3-4 and 4-5 are less likely to have such patterns. In fact, as a WW trader, you want the 4-5 path to be carved out as smoothly as possible. Which we also have here. The is near completion, but this alone will not give us a complete analysis.
Geo's Off-Set Rule - I have defined levels at 0.75558 and 0.71548 to clearly show where the Geo's Off-Set Targets lie.
- Rule 1 - If WW completes at point 5, we will look at the 1-4 line as the exit point.
- Rule 2 - If price hits 5', we will look at point 4, 0.71548, as the exit point.
- Rule 3 - If price hits 5" we will look at point 3, 0.75558, as the exit point.
Fib Clusters - There are 2 Fibonacci Extensions I chose to display in this chart. The first one is the one on points 1 & 2. This gives us a maximum excursion point at which price will need to reach in order to complete the 1.618 ratio. The next is used on the final leg down from 3-4 which gives us a 2.618 confluence zone with the previous Fib Extension.
With that said, 0.78228 is the point price will need to reach in order to reverse its direction. If this pair moves quickly we may touch the 5' line defined, which would give us a high probability target of 0.71548 as an exit. If price does not reach the 5' line I still expect 0.71548 to remain a high probability target.