Hello everyone and welcome to my trading idea. First of all, it is useful to identify the main trend so that a good wave count can be made. So, let's go to the weekly chart and look at the prices. We will see that the main trend is a bull trend.
Now, to start counting the waves, let's look at the daily chart. I have identified what I think is the third wave and I have confirmed this by the fact that the third wave of the third wave looks really strong. So, I can count the previous movement as the first and second wave and I expect the fourth and fifth wave. Usually, the fourth wave ends in the lower level of the fourth wave by a lesser degree of generality. In this case, the fourth wave of the third wave. Our task is therefore to understand if this movement (wave 4) has ended or will continue for a short time.
To understand this, let's turn to the hourly chart. In this situation I have 3 interpretations. Two lead me to say that the price will go down, the last leads me to say that the corrective movement has now ended and that therefore we are in the presence of the beginning of wave 5. The current situation, however, the triangle that is is formed, discredits this hypothesis. Furthermore, the volumes decrease and this confirms the triangle. Furthermore, the waves inside the triangle seem not motive but corrective. So, the hypothesis that the price goes up at the moment I can discard it. So I expect a drop I think down to the $ 21,000 level. We will see in the next few days.
Thank you !
Now, to start counting the waves, let's look at the daily chart. I have identified what I think is the third wave and I have confirmed this by the fact that the third wave of the third wave looks really strong. So, I can count the previous movement as the first and second wave and I expect the fourth and fifth wave. Usually, the fourth wave ends in the lower level of the fourth wave by a lesser degree of generality. In this case, the fourth wave of the third wave. Our task is therefore to understand if this movement (wave 4) has ended or will continue for a short time.
To understand this, let's turn to the hourly chart. In this situation I have 3 interpretations. Two lead me to say that the price will go down, the last leads me to say that the corrective movement has now ended and that therefore we are in the presence of the beginning of wave 5. The current situation, however, the triangle that is is formed, discredits this hypothesis. Furthermore, the volumes decrease and this confirms the triangle. Furthermore, the waves inside the triangle seem not motive but corrective. So, the hypothesis that the price goes up at the moment I can discard it. So I expect a drop I think down to the $ 21,000 level. We will see in the next few days.
Thank you !
Comment:
Another view is to delay the triangle of on wave. The wave A is the final wave of the precedent impulse and so on.