The current analysis is based on the current price action.
- Shallow Wave 2 Retracement (38% Fib in this case): In Elliott Wave Theory, wave 2 is typically a corrective wave that follows wave 1 (the initial upward or downward move). A shallow retracement in wave 2 suggests that the price does not retrace much of the initial wave 1 move, indicating a strong trend.
- Deep Wave 4 Retracement (61% in the case): Wave 4 is another corrective wave that comes after wave 3. A deep retracement in wave 4 means that the price retraces a significant portion of the wave 3 move. It can indicate a pause or consolidation in the trend.
- Wave 5 Projection: Wave 5 is the final wave in the Elliott Wave sequence and is expected to move in the direction of the larger trend. The projection for wave 5 is based on factors like the current price, confluence with technical analysis tools such as channels, and significant price levels, such as points of interest (POI) zones.
- Longest Wave 1 (Not too common): In some cases, Elliott Wave Theory suggests that wave 1 can be the longest wave in a series, which means that it has the most significant price movement.
3 days before close. the price is printing a massive bearish pinbar illustrating an exit liquidity zone.
I would like to a proper distribution in 1D or 4H before jumping on a trade. Until then the price can be volatile.