Wave C of ZigZag to complete following break of Triangle
Wave E in the contracting Triangle I posted previously appears to have completed as a 5 wave impulse. It looks as tho this impulse in wave E is being corrected by a ZigZag which is currently in wave 3 of C. A barrier triangle has formed as wave 4 of 3 in C. On the break of this triangle I am expecting a wave 5 to complete wave 3 of C, then be corrected by a wave 4 of C and be followed by wave 5 of C for a nice short term trade.
After the A,B,C ZigZag is complete an impulse move to the upside for wave 3 would make my previous triangle idea look unlikely to unfold. However further downside below the 0.618 fib level would support the idea.
Entry:
Just below the break of the barrier triangle in wave 4 of 3 in C.
Stop Loss:
Just above the extreme of wave E in the barrier triangle in wave 4 of 3 in C.
Targets:
The most common retracement for a wave 2 is the 0.618 fib level off the impulse. The idea of using this area as a rough target is supported by a trend line drawn parallel from the start of wave A to the extreme of wave B of the ZigZag, from the extreme of wave A. It is common for wave C to finish equal in length to wave A in a ZigZag, this also supports the idea of C ending around this area.
Note: Just noticed some labeling of the internal structure of the impulse is wrong and I cant change it but the wave counts still convey the idea correctly.
After the A,B,C ZigZag is complete an impulse move to the upside for wave 3 would make my previous triangle idea look unlikely to unfold. However further downside below the 0.618 fib level would support the idea.
Entry:
Just below the break of the barrier triangle in wave 4 of 3 in C.
Stop Loss:
Just above the extreme of wave E in the barrier triangle in wave 4 of 3 in C.
Targets:
The most common retracement for a wave 2 is the 0.618 fib level off the impulse. The idea of using this area as a rough target is supported by a trend line drawn parallel from the start of wave A to the extreme of wave B of the ZigZag, from the extreme of wave A. It is common for wave C to finish equal in length to wave A in a ZigZag, this also supports the idea of C ending around this area.
Note: Just noticed some labeling of the internal structure of the impulse is wrong and I cant change it but the wave counts still convey the idea correctly.