I show two different scenarios with the ABC correction. In the green one the ABC completion is finished and we can start another leg up. Alternatively in the red if this is a huge broader sell off(less likely) and we just completed leg A we can go as low as 6k. Personally im bullish and believe we are more likely to continue up from this point making the Green scenario far more likely. As such i have entered into a position in the wick on the bottom(11,800), based on the historical fact that we tend to reverse on the .5. However this trade was acceptable was based on my risk/analysis tolerance and it was a small portion of my overall portfolio. If we took another 50% reduction and red scenario played out i would still be fine, and buying more. That is the strength of proper capital management. If you are looking for technical signs or indicators to enter the market at this stage, there is none. You can make a case but youd be reaching. Each trader must analyse their own risk and reward tolerance before entering this trade and ask themselves if the red scenario plays out, how much are they willing to lose.
Best of luck traders.
Best of luck traders.
Comment:
Red Scenario looking more and more likely
Comment:
red scenario played out perfectly
