Various technical analysis techniques taking place in this particular markup. CJ was initially showing bullish waves, marking prominent highs and lows, also creating an AB=CD pattern in extended Wave 3. The plotted horizontal lines act as Support and Resistance (Red=Daily, Green=H4), found on the Line chart, specifically marked off three scenarios of spikes: Touches, Gaps, and Overlaps. (A spike must hit both sides of the line in order for it to be validated. The three scenarios listed previously are the styles of hits. A touch is when market simply "touches", based on the line chart, both sides of structure. A "Gap" is when market does not directly touch both sides but structure can be placed equally between the two, which typically results as wicks or stop hunts on the candle chart. Lastly, an "overlap" is when market tests both sides of structure by overlapping the level. You should also try to mark overlaps equally. This scenarios are marked by Lime green ovals. I did not differentiate between the styles, sorry in advance.) It is also important to note that 1000 pip range should not exist between these levels. (This is displayed on the left side of my chart with the blue Date Range box which reads 4.722. In plain terms, avoid hitting 5 digits.) The Green 4H levels are few, I intend to add more soon with the upcoming market developing. Plotting these also takes place on the line chart and follows the same contact scenarios. 2-3 4H levels should be drawn between each daily. Once the corrective wave began taking place, breaking the markets last Lower Low, structure proved the trend reversal. My Black trendline has maintained respect of a buyers market and my projected expansions are based off the markets most recent low, to the first established high (A) and back into the low. Since our first retrace was that of 61.8, my expansions look to target the inverse, 1.618. This area also has a Daily and 4H resistance so the target area of trade termination, or possible reversal, is probable within this confluence zone. It is also important to mention that the 61.8% of the entire bullish move takes place in this area as well (though not drawn, price is 94.39). There is a great monthly descending trend line that could come in to play as well (not drawn, point 1 =11-01-07, point 2=12-01-14).
Komen:
Correction: the retrace reached 61.8, meaning our equal measured move would be the 1.414.