All information should not be taken as call to Action, this is my personal view of market situation.
Rule of thumb "Never trade in wave4".
Now it is exactly that situation when you look at chart and do not see good entry for long or short. Volatility increased and hunt after our stops begun.
Why Wave 4 ?! If you look at Sub-wave A there is only 3 waves, and this only allowed in (complex)correction. Big move(52->8$) = Always Wave3 of some timeframe.
Previously i was looking for short in 20-22 area, but we actually overshoot that upto 26$. That made Wave C 1.62 to A, what is according to rules. But from my observations in stocks, waves tend to like Fib ratio of 2 as well.
And if we look at chart now Fib2 will bring us to 29$ and this area corresponds to Fib Retracement of 0.5(52$) or 0.62(44$) depends how you calculate.
So my plan is to sit and wait for price to break below 16.50$( scenario 1 ), where i will start shorting on lower(1m,5m) timeframes as daytrader OR
Break upper resistance of 26$ and come to 29-31$ where we may look for good shorting opportunity.
But overall sentiment is still that we on vacation season where institutional traders enjoy their summer vacation and overall economical situation is not good.
You may like or hate my views. But most important, stay calm and do not give more money to the market than You Decide !!!
Rule of thumb "Never trade in wave4".
Now it is exactly that situation when you look at chart and do not see good entry for long or short. Volatility increased and hunt after our stops begun.
Why Wave 4 ?! If you look at Sub-wave A there is only 3 waves, and this only allowed in (complex)correction. Big move(52->8$) = Always Wave3 of some timeframe.
Previously i was looking for short in 20-22 area, but we actually overshoot that upto 26$. That made Wave C 1.62 to A, what is according to rules. But from my observations in stocks, waves tend to like Fib ratio of 2 as well.
And if we look at chart now Fib2 will bring us to 29$ and this area corresponds to Fib Retracement of 0.5(52$) or 0.62(44$) depends how you calculate.
So my plan is to sit and wait for price to break below 16.50$( scenario 1 ), where i will start shorting on lower(1m,5m) timeframes as daytrader OR
Break upper resistance of 26$ and come to 29-31$ where we may look for good shorting opportunity.
But overall sentiment is still that we on vacation season where institutional traders enjoy their summer vacation and overall economical situation is not good.
You may like or hate my views. But most important, stay calm and do not give more money to the market than You Decide !!!
Comment:
Comment:
Update: Noted strong move down. More likely sideways (Triangle) correction canceled. based on Calculations Wave 4 time frame is 24-29 June. If we break 14.89, there is nothing supporting that short uptrend anymore and i will consider trades to downside breaking the lows.
