Extensions are great and all for profits, but they can become difficult to count. Once they extend beyond normal fib lines it becomes structure only to guide your count. This can lead to misinterpretations, mislabeling, and at times confusing price action. The count you see in this chart is the best interpretation I can make of this chart at this time.
There are only two real rules that CANNOT be broke under ANY circumstances. One of which is that wave 3 cannot be the shortest motive wave within a 5-wave structure. In this count, wave i extended and is larger than wave iii. In a 5-wave count at least one motive wave MUST extend but no more than two of them. When wave i extends, it typically ends up being the only wave that extends within the structure. I believe that is what we're seeing here on the micro count. Wave i extended with wave iii being short, but wave v is the shortest. Therefore, according to this count, no rules have been broken.
We then retraced right up to the 0.5 retracement fib before heading higher in a 5-wave structure. What I would like to see next is a slight retrace of about 3% in a 3-wave move to the high $160's before raising again towards the next box. This isn't required but would create a healthy structure to raise off of again. I am going to put in a pre-market order to buy 30 shares @ $168 and then place a stop of $163. That's risking $150 in losses for a potential $1380 in profits. I'll take those odds any day.
Don't forget, beginning February 23rd (this Friday), I will be dramatically changing my posting schedule here on trading view. My last regular post / update will be on that day.
Trade active
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My pre market order filled at $166 and my stop is set at $162. Let's see if I stop out here as it is close
Trade closed: stop reached
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stopped out
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Price dipped just below the 0.5 retracement today and stopped me out before raising slightly higher again. No rules have been broken and the upward count is still in tact. Wave 4 bottom is NOT confirmed yet but if it lowers much more I'll start to question the micro count more. We should get answers tomorrow
I did enter at 165.1 with a small quantity. Kept my Stop sub 160 and now I have trailed my stops to today's low.
Your posts are really helpful. Thank you once again.