Hello, fellow traders.
As you can see over the past month we have been following a repeating fractal pattern. It's pretty incredible how a seemingly chaotic market can have such choreographed movement.
Fractals can be a great guide at showing where we could go next in price if we continue it's path, but fractals can end abruptly. This is very important to know.
I would be cautious playing an Elliott wave count here. I know some of you want to treat this recent jump in price as a first impulse wave and place buy orders around the 50% to .618% fib retracements of said wave. Which is how you would typically play an impulse wave. However, if you look at previous weeks you can see that if you entered in at those fib levels you would have gotten stopped out. So I feel it's a smarter play to let the market show its hand a bit more before going long or short. Especially in the middle of a nice fractal run.
It really depends on how much volume we get in the next week (Around the orange zone) that will decide where the market is going in the short term.
Low volume and no higher high in around the orange zone and we theoretically will continue the fractal downwards.
High volume and a higher high would mean we could have a c-c-c-combo breaker on our hands and aim for the higher targets.
I have approximate targets set for each scenario for entertainment purposes only :)
As you can see over the past month we have been following a repeating fractal pattern. It's pretty incredible how a seemingly chaotic market can have such choreographed movement.
Fractals can be a great guide at showing where we could go next in price if we continue it's path, but fractals can end abruptly. This is very important to know.
I would be cautious playing an Elliott wave count here. I know some of you want to treat this recent jump in price as a first impulse wave and place buy orders around the 50% to .618% fib retracements of said wave. Which is how you would typically play an impulse wave. However, if you look at previous weeks you can see that if you entered in at those fib levels you would have gotten stopped out. So I feel it's a smarter play to let the market show its hand a bit more before going long or short. Especially in the middle of a nice fractal run.
It really depends on how much volume we get in the next week (Around the orange zone) that will decide where the market is going in the short term.
Low volume and no higher high in around the orange zone and we theoretically will continue the fractal downwards.
High volume and a higher high would mean we could have a c-c-c-combo breaker on our hands and aim for the higher targets.
I have approximate targets set for each scenario for entertainment purposes only :)