Hello everyone.
So there's been much deliberation over the wave count. Certainly the drop from 10k has had a few minor bounces, and it is hard to distinguish what is really completion of a wave ... which obviously impacts the wave count. So this morning I switch to Renko bars ... looks clear as a sunny day to me.
Up to now, over the past 2 days, I've been wondering if we are forming a wave 4 now ... but I don't like what I see ... we are stuck range bound, no real recovery (I expected a bounce to around 7800 mark. The weekend hasn't provided any major support for the bulls, maybe a little rest (equally for bears!).
Renko makes it clear ... we are technically still in wave 3, no confirmation of wave 4. Now, it could be a start of wave 4 ... but we have NO confirmation. That means, it's wave 3 until we have confirmation! So what can happen? Let's say Asia markets open up on Monday and they rally it up, thinking we have a temporary bottom .... then, we can welcome wave 4. But let's say the see weakness, and after closing shorts at 72XX, they decide 7600 is a great place to open shorts again ... continuation of wave 3, and the target is there, the bottom of the triangle at around 69XX. That would mean we should still form wave 4 up and another wave 5 down!! So we could have an extended wave E, past the bottom of the triangle, to do a double bottom test of 6425 (Bitfinex).
So, there you go ... Monday morning in Asia ... watch it closely.
Remember, only a fool relies on one potential outcome.
Do not use this information for financial decisions. For educational purposes only.
So there's been much deliberation over the wave count. Certainly the drop from 10k has had a few minor bounces, and it is hard to distinguish what is really completion of a wave ... which obviously impacts the wave count. So this morning I switch to Renko bars ... looks clear as a sunny day to me.
Up to now, over the past 2 days, I've been wondering if we are forming a wave 4 now ... but I don't like what I see ... we are stuck range bound, no real recovery (I expected a bounce to around 7800 mark. The weekend hasn't provided any major support for the bulls, maybe a little rest (equally for bears!).
Renko makes it clear ... we are technically still in wave 3, no confirmation of wave 4. Now, it could be a start of wave 4 ... but we have NO confirmation. That means, it's wave 3 until we have confirmation! So what can happen? Let's say Asia markets open up on Monday and they rally it up, thinking we have a temporary bottom .... then, we can welcome wave 4. But let's say the see weakness, and after closing shorts at 72XX, they decide 7600 is a great place to open shorts again ... continuation of wave 3, and the target is there, the bottom of the triangle at around 69XX. That would mean we should still form wave 4 up and another wave 5 down!! So we could have an extended wave E, past the bottom of the triangle, to do a double bottom test of 6425 (Bitfinex).
So, there you go ... Monday morning in Asia ... watch it closely.
Remember, only a fool relies on one potential outcome.
Do not use this information for financial decisions. For educational purposes only.