The week ahead. Does the bearish move continue ? Price would suggest it does with a large candle engulfing many weeks of price action. The implications are we can expect 3 to 4 price periods of similar movement. With entry here, a large stop is needed and position size adjusted accordingly. Ideally, a pullback for the 1-2 move of the 4/5 cycle would be nice. But we dont always get nice..
@RalphStPierre, Wave 4 can't go into the territory of wave 1. If you consider this an impulse wave then this is not Elliot Wave it's something else
RalphStPierre
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@TAG-Strategy-Trading, I see what you mean...The wave rule for wave 4 breaching the wave 1 area has been updated by many top wave analysts. Their new take is it can breach wave 1 but not close in th area. But you raised an interesting point. The Theory was actually developed on the close of price. If you chart a line chart that moves our wave 1 to the 2 position.
TAG-Strategy-Trading
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@RalphStPierre, I think that this is the correct one, but we never know, time will show.
RalphStPierre
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@TAG-Strategy-Trading, nice work. Im inclined to follow the green route at this point. Which will give us a zigzag correction for your intermediate count. Depending on your subjectivity For me. EW is much like predicting the weather. Long term forecasts are troublesome. Shorter term price action is boss Keep up the nice work. Trade Well.
TAG-Strategy-Trading
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@RalphStPierre, Thanks, my plan is to wait for the correction to end and to enter Long with a safe-stop-loss that will also provide at least 1:2 Risk-Reward. Keep up the nice work and have your risk managed. Let's see how it plays out.