It appears 5 subwaves of a Contracting Triangle have completed in wave 4. It looks like this Contracting Triangle may be the full corrective move of wave 4 since it has reached the .382 fib retracement of wave 3, this is the most common retracement for a wave 4. It also appears to have ended near extreme of wave 4 of one lesser degree in the impulse which is another common price level for a corrective move in wave 4. This wave 4 is also in correct proportion to wave 2. The RSI indicator supports my prediction that wave 4 has ended. RSI Range Rules say that in an up-trending market RSI will typically fall back to the 50-40 zone in a corrective move and bounce up at its completion. The Stochastic is also nearly showing oversold conditions.
Entry:
Conservative entry on the break of the wave D extreme.
Stop Loss:
Just below the extreme of wave E.
Targets:
My system says pattern over hard take profit targets so I will wait for a 5 wave impulse to complete while managing the trade along the way (Lessen Risk -> Eliminate Risk -> Protect Open Profits). As a guideline wave 5 could possibly end around the line drawn from the extreme of wave 3, parallel to a line connecting the extreme of waves 2 and 4. The other 2 targets are based on wave 5 being equal to a .328 multiple of the net distance of wave 1 through 3 and being equal to a .618 multiple of the net distance of wave 1 through 3. All of these are common fib multiples for wave 5 in an impulse.
Entry:
Conservative entry on the break of the wave D extreme.
Stop Loss:
Just below the extreme of wave E.
Targets:
My system says pattern over hard take profit targets so I will wait for a 5 wave impulse to complete while managing the trade along the way (Lessen Risk -> Eliminate Risk -> Protect Open Profits). As a guideline wave 5 could possibly end around the line drawn from the extreme of wave 3, parallel to a line connecting the extreme of waves 2 and 4. The other 2 targets are based on wave 5 being equal to a .328 multiple of the net distance of wave 1 through 3 and being equal to a .618 multiple of the net distance of wave 1 through 3. All of these are common fib multiples for wave 5 in an impulse.
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.