This is the educational post, regarding how ABC- Zig-Zag pattern looks like, how it is formed and what are the possibilities regarding targets targets and stop-loss.
1- basic structure for wave ABC.
Here, wave A starts from 0 (starting point of wave A) to A (end of wave A) wave A completes here.
Next, wave B starts from A (end of wave A) to B (end of wave B) wave B completes here.
Next, wave C starts from B (end of wave B) to C (end of wave C) wave C completes here.
2- Sub Structure
Wave A consists of 5 wave structure (wave1,2,3,4,5)
Wave B consists of 3 wave structure ( wave a,b,c)
Wave C consists of 5 wave structure (wave1,2,3,4,5)
Wave A & C must fulfill all conditions of impulsive wave where as wave B must satisfy all conditions of corrective wave.
NOTE: we have shared chart on daily time frame and in our educational post we taking 1 hour time frame for better understanding
I have marked wave A, wave B and wave C on 1 hour timeframe with sub wave counting for better understanding.
Impulsive wave conditions:
impulsive subdivides into 5 sub-waves, where, wave 1,3,5 are impulsive and wave2,4 are corrective
wave 2 cannot retrace 100% of wave 1
within all three impulsive waves wave 3 cannot be shortest
wave 4 cannot ends in wave territory of wave 1
Their must be some alteration within wave 2 and wave 4
Now after wave A formation, we must confirm it's ending and should wait for corrections.
Retracements should be confirmed with fib correction tool and corrections could end somewhere between 3% to 61%. (refer diagram)
Wave B must consists of corrective wave structure i.e. A,B,C (corrective wave could be any one of following: Zig Zag, Flats, Extended Flats & triangles, double threes, triple threes etc. shall cover all patterns in nest post!)
Now again when wave B gets end and confirmed, one must start looking for trade possibilities in wave C, as Wave C is the most powerful among all corrective wave structure. (trend based fib extension tool made used for finding targets of wave C)
Normally wave C must end after extending 100% of wave A ( normal conditions) and in extended conditions it must ends somewhere 100% to 161% or even more.
1- basic structure for wave ABC.
Here, wave A starts from 0 (starting point of wave A) to A (end of wave A) wave A completes here.
Next, wave B starts from A (end of wave A) to B (end of wave B) wave B completes here.
Next, wave C starts from B (end of wave B) to C (end of wave C) wave C completes here.
2- Sub Structure
Wave A consists of 5 wave structure (wave1,2,3,4,5)
Wave B consists of 3 wave structure ( wave a,b,c)
Wave C consists of 5 wave structure (wave1,2,3,4,5)
Wave A & C must fulfill all conditions of impulsive wave where as wave B must satisfy all conditions of corrective wave.
NOTE: we have shared chart on daily time frame and in our educational post we taking 1 hour time frame for better understanding
I have marked wave A, wave B and wave C on 1 hour timeframe with sub wave counting for better understanding.
Impulsive wave conditions:
impulsive subdivides into 5 sub-waves, where, wave 1,3,5 are impulsive and wave2,4 are corrective
wave 2 cannot retrace 100% of wave 1
within all three impulsive waves wave 3 cannot be shortest
wave 4 cannot ends in wave territory of wave 1
Their must be some alteration within wave 2 and wave 4
Now after wave A formation, we must confirm it's ending and should wait for corrections.
Retracements should be confirmed with fib correction tool and corrections could end somewhere between 3% to 61%. (refer diagram)
Wave B must consists of corrective wave structure i.e. A,B,C (corrective wave could be any one of following: Zig Zag, Flats, Extended Flats & triangles, double threes, triple threes etc. shall cover all patterns in nest post!)
Now again when wave B gets end and confirmed, one must start looking for trade possibilities in wave C, as Wave C is the most powerful among all corrective wave structure. (trend based fib extension tool made used for finding targets of wave C)
Normally wave C must end after extending 100% of wave A ( normal conditions) and in extended conditions it must ends somewhere 100% to 161% or even more.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.