I'm still trying to pick up the pieces from last week. It's funny how when something knocks you off your trading high-horse you can start to second guessing the way you trade. No better way to get back in the saddle than with a new chart!
We've got two competing AB=CD patterns vying for dominance, Bullish in red, Bearish in blue. Bulls did achieve a higher high, higher low over previous structure, but it is looking as though they might let this one get away from them. Short term I'm looking for price to reach for my D leg completion of the bearish ABCD around $590 and will be watching (hoping) for momentum to take us to the C point of the Cypher pattern in the high $570's before a reversal. Yes it's a long way off, but you gotta plan ahead. :)
If things go pear-shaped on me I'll be looking to lick my wounds on the way to $650 for our Bullish ABCD completion. Likely at that point we would call off the Cypher hunt as well.
Cypher Pattern Requirements:
~ Point B is established by a minimum 38.2 retracement of XA leg. The AB move will remain valid so long as 38.2 is achieved and there is not a candle close beyond 61.8 of XA retracement.
~ Point C is establishe by at least a 127.2% extension of the XA leg. The BC move will remain valid as long as there is not a candle close beyond the 141.4% extension of XA.
~ Point D is formed by a 78.,6 retracement of the distance, XC.
~ C must always exceed A; D must always exceed B.
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Targets: #1, 38.2% retracement of CD let ... #2, 61.8% of CD.
We've got two competing AB=CD patterns vying for dominance, Bullish in red, Bearish in blue. Bulls did achieve a higher high, higher low over previous structure, but it is looking as though they might let this one get away from them. Short term I'm looking for price to reach for my D leg completion of the bearish ABCD around $590 and will be watching (hoping) for momentum to take us to the C point of the Cypher pattern in the high $570's before a reversal. Yes it's a long way off, but you gotta plan ahead. :)
If things go pear-shaped on me I'll be looking to lick my wounds on the way to $650 for our Bullish ABCD completion. Likely at that point we would call off the Cypher hunt as well.
Cypher Pattern Requirements:
~ Point B is established by a minimum 38.2 retracement of XA leg. The AB move will remain valid so long as 38.2 is achieved and there is not a candle close beyond 61.8 of XA retracement.
~ Point C is establishe by at least a 127.2% extension of the XA leg. The BC move will remain valid as long as there is not a candle close beyond the 141.4% extension of XA.
~ Point D is formed by a 78.,6 retracement of the distance, XC.
~ C must always exceed A; D must always exceed B.
==========================================
Targets: #1, 38.2% retracement of CD let ... #2, 61.8% of CD.