This bullish count is technically valid as long as the price does not go below Yellow Wave 1 top (excluding wicks) or below wave 2 (In case this is indeed an expanding diagonal) . The stops are aligned as per this assumption
Also, wave 3 length is 1.618 Fib of wave 1, which is ideal for a 3rd wave. The wave 2 correction was shallow till 0.382 Fib of wave 1, while wave 4 correction is deep, beyond 0.618 Fib of wave 3. These points add support to the bullish theory.
In case this is an expanding diagonal, wave 5 must go beyond wave 3, our target is above $4400. This is possible in a C (white) wave and this target gives us a 1:1 ratio of wave A (white)
Be cautions if you trade this as we could be easily be at the beginning of the wave which will make new lows in this market. There are also lot of hurdles (resistances) on the way up
See this post
Background:
After last night's steep fall, it appeared that this rally was finished and we are going back to retest the lows or make new lows. However, it is important to have an open mind about other possibilities and a post from one of my teachers made me think and come up with this chart. So credit goes to him (Do follow him)
Another EW analyst who tracked this rally pretty well
Also, wave 3 length is 1.618 Fib of wave 1, which is ideal for a 3rd wave. The wave 2 correction was shallow till 0.382 Fib of wave 1, while wave 4 correction is deep, beyond 0.618 Fib of wave 3. These points add support to the bullish theory.
In case this is an expanding diagonal, wave 5 must go beyond wave 3, our target is above $4400. This is possible in a C (white) wave and this target gives us a 1:1 ratio of wave A (white)
Be cautions if you trade this as we could be easily be at the beginning of the wave which will make new lows in this market. There are also lot of hurdles (resistances) on the way up
See this post
Background:
After last night's steep fall, it appeared that this rally was finished and we are going back to retest the lows or make new lows. However, it is important to have an open mind about other possibilities and a post from one of my teachers made me think and come up with this chart. So credit goes to him (Do follow him)
Another EW analyst who tracked this rally pretty well
