I am new at this wave trading and find the forecasting of direction and retracements fascinating!
Being new, I will probably have some of the wave labels wrong, but I am not so worried about getting them perfect, so please don't be so pedantic as to correct every detail.
If you have a different "idea" using waves & Fibos, feel free to show a chart so we can all learn together...
I am certainly not claiming to be a guru or trying to become one, just wanting to be part of a community where we can all learn without having to fork out precious cash..
So, as I see it, we have the end of a correction, which would mean the beginning of a trend... exactly where we want to trade!
The first wave is almost complete with 5 waves (in blue), so wave 2 should be a retracement almost back to the broken structure line and the perfect place to enter short.
In a perfect world we should see another 5 waves (yellow) for wave 3 (green) which means a lot of pips!
Let's see how it pans out!
Great! No indicators :-)
I note that many use divergence of oscillators to warn of pending trend change. The problem is that they don't tell you when the trend is going to change.. That is like me telling you there is going to be an earthquake this year... It is probably correct, but the information means nothing without a time or place.
Oscillators must return to their zero level and as we all have learned through experience with the Stochastic for example, it will start heading down in the middle of an up trend, so showing divergence way too early to be of any real value.
So chart patterns and Elliott waves measured with Fibo's seem to me to be an accurate way to forecast trend changes..
Looking forward to a new week trading...
All the best with your trades!