I hate to say it guys but this correction might not be over. What I can say with confidence, however, is that we have already completed a text book 3-3-5 Flat Correction and that did not end the overall correction. Then we completed what looks to be a large ABC pattern or X Wave and that did not end it.
From what I have studied some corrections become more complex by chaining multiple Elliot Wave corrections together before the overall correction finally ends. A "Double Three" for example will complete one corrective wave pattern, have an X Wave, followed by another corrective pattern and then it's over. There is also something called a Triple three which has a corrective pattern, x wave, corrective pattern, x wave, and then ends on the third corrective pattern. Hopefully we won't have time for all that nonsense.
What appears to have happened is that we definitely completed a 3-3-5 Flat corrective pattern and I'm assuming the big ABC that followed was the X Wave and we are now trying to finish up with the final corrective pattern. The Zig Zag makes the most sense at this point and looks to be what may be playing out. The Zig Zag is a 5-3-5 type corrective wave pattern.
For Elliot Wave pattern traders looking to profit from this move they might exit their longs or go short at the top of the Zig Zag B wave and cover or go long again at the bottom of Wave 5 at the end of the pattern. Of course hitting those marks exactly is easier said than done and by the time you actually realize what pattern is forming it is often too late for the best entries or exits. Unless of course you know the Fib retrace levels which can give you a bit of a heads up on where the waves will most likely begin and end.
At any rate, like always, this is not advice, just one person's opinion of the current chart situation. I thought about raising cash at the top of Wave B but will probably wait and just add more longs to my position at the bottom of the Zig Zag if that plays out. Yes, very possibly around $8,500 :0(
No matter how you play the chart over the next several weeks good luck!
BBS out.
From what I have studied some corrections become more complex by chaining multiple Elliot Wave corrections together before the overall correction finally ends. A "Double Three" for example will complete one corrective wave pattern, have an X Wave, followed by another corrective pattern and then it's over. There is also something called a Triple three which has a corrective pattern, x wave, corrective pattern, x wave, and then ends on the third corrective pattern. Hopefully we won't have time for all that nonsense.
What appears to have happened is that we definitely completed a 3-3-5 Flat corrective pattern and I'm assuming the big ABC that followed was the X Wave and we are now trying to finish up with the final corrective pattern. The Zig Zag makes the most sense at this point and looks to be what may be playing out. The Zig Zag is a 5-3-5 type corrective wave pattern.
For Elliot Wave pattern traders looking to profit from this move they might exit their longs or go short at the top of the Zig Zag B wave and cover or go long again at the bottom of Wave 5 at the end of the pattern. Of course hitting those marks exactly is easier said than done and by the time you actually realize what pattern is forming it is often too late for the best entries or exits. Unless of course you know the Fib retrace levels which can give you a bit of a heads up on where the waves will most likely begin and end.
At any rate, like always, this is not advice, just one person's opinion of the current chart situation. I thought about raising cash at the top of Wave B but will probably wait and just add more longs to my position at the bottom of the Zig Zag if that plays out. Yes, very possibly around $8,500 :0(
No matter how you play the chart over the next several weeks good luck!
BBS out.
Comment:
Don't get me wrong people. I am not Bearish long term. I am a Bull of Bulls. What I am saying is that a new Bull run will start with a very aggressive and impulsive 5 wave move up. We have not seen that yet. What we have seen is several corrective moves back to back and I am still looking for the termination of the overall correction. I have not seen it yet. If it has already happened then we should know soon. I just have not been able to line it up with a valid impulsive pattern yet. It's like other things in life such as love. "You can't really explain it but you'll know it when you see it" I just haven't seen it yet.
Comment:
Hit the play button. This chart is playing out very well so far.....
Trade closed: target reached
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