We have embarked upon the ascent of wave 5, which will run its course to the region of $ 10 500. I've marked out speculative targets on the chart, which I will update as necessary. Once this target is reached, I think we will have a further move upwards to $ 11 500 where price will meet overhead resistance of the main channel trend line and cause gravity to take over.
Personally, I am not prepared to take this trade until we complete sub-wave 2 of wave 5.
Happy Trading !
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looks like a failed wave .. back to the drawing board!
Hey mate, I enjoy your ideas. I am curious to know why, if when you posted this idea with the price at 9100 and you expected it to go to 10500, that you didn't want to make a trade for 15% profit, especially as you also thought if it made it to the first target, it was the likely to continue to 11500, giving 26% profit? I am just picking up bits and pieces of strategies and think you have something I am not seeing.
UnknownUnicorn416662
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@iguana10, Thank you for the compliment. I really appreciate constructive discussion.
My thinking was as follows:
1. 4/5 waves completed successfully within correct Fibonacci measurement parameters. The assumption was therefore that wave 5 would complete as a mirrored measurement of wave 1 (100%) and possibly extend to the upper parallel channel bound @ $ 11 500 (lower bound @ $ 6500)
2. I did not feel comfortable with wave 5 because RSI / MACD divergence was not present and because of a touch to the top bound of a symmetrical triangle which is visible on the daily.
3. I figured that if sub-waves 1 & 2 (of wave 5) completed successfully, that sub-wave 3 would be a sure thing and hold most of the gain to be made from the trade. Low Risk - Big Reward !
Please feel free to comment and give me input on your thinking ?
iguana10
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@pseudomania, Thanks for that great response! These are the sort of details that seem to be inherently known by experienced traders, communicated by unspoken background knowledge. It is very impressive to me, but I gotta tell ya, may as well be written in double Dutch interspersed with Greek for my current level of understanding, because I am not long in this game. Thanks for taking the time to detail. When I start learning the EW and Fibonacci, your reasons are going to be fantasticaly valuable references for me.
So please be patient for my future response about whether I would concur or not with your thoughts, haha. One day.
It was all greek to me at a point in time. Just keep going at it and let me know if you have any questions.
I've still got a lot to learn and will always see myself as a student.
My ambition is to promote positive discussion on Trading View. This could be an excellent learning resource for everyone!
People should forget about trying to be "all knowing guru's" and claim they can accurately predict the future. They can't !!
The best an analyst can do is point out likely probabilities and trade good risk/reward setups with a tight stop.
Sometimes it works out .. other times it does not!
iguana10
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@pseudomania, I am with you on that. I think that is the intention of the creators of this site. But people are people and all can do as they please. It's up to the individual to be involved with who they choose to, find like minded souls. The big noters and comments were entertaining and an insightful introduction for me. I have spent a lot of time reading them over the last couple of months. Glad I had the time to, but now to move on. I am not rushing, I am going to get this right. I look forward to talking with you again and sure, I will ask again for any clarifications I will need. Hopefully others will join in too.
iguana10
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@iguana10, Forgot to mention!- I have a page with questions called "Question everything" which I am sure will be very basic for you, but things I really need some confirmation on. Maybe if you get a chance sometime? It's 2.30am here and I must be up at 6.30 so catch you later mate.