BRETTGUS1

CND continues to correct

BINANCE:CNDBTC   Cindicator / Bitcoin
In Elliot wave , corrections are often in a channel with multiple overlapping waves. The rule states that these waves will eventually be completely retraced and that price will eventually go above the previous impulse wave. Assuming this is a second wave correction, second waves often retrace atleast 61.8% of the previous impulse wave( wave 1). This is the case with CND right now. Price is in a channel correction.
How do we trade these corrections?
It has pierced the 50% retracement level so we are looking at price to at least go to the 61.8% retracement . Aggressive entry would be to ladder (buy) into a position at the 50% 61.8 and 78.6% levels.
A conservative approach would be to wait for confirmation of a reversal. The first sign is a small impulse wave in the opposite direction of the correction. Another sign is a strong break of channel with good volume . Another possible sign is a head and shoulders formation.

Each of these signs could be used as a reason to closely watch a pair, or could be used to enter into a trade.

Comments

Well done.
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hi.is it time?
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BRETTGUS1 mors2024
@mors2024, look for bottom signs. 1 a divergence on RSI. Head and shoulders formation. breaks of trendlines. RSI higher high, higher lows. atleast three strong candles with increasing volume.
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