I'm new to trading waves and any feedback is appreciated.
I see DJI nearing the end of the 3rd wave and am expecting a correction similar to that of wave 2.
The fourth wave will be one of the three corrective pattern types and could become more complex, I just added the bar forecast as a general estimation.
I expect it to form the fourth sub wave from the 1.618 extension and continue the 5th sub wave down to around the 22500 area.
If this is correct then I would be looking for signs of the start of wave 5 and entry points.
Thanks.
I see DJI nearing the end of the 3rd wave and am expecting a correction similar to that of wave 2.
The fourth wave will be one of the three corrective pattern types and could become more complex, I just added the bar forecast as a general estimation.
I expect it to form the fourth sub wave from the 1.618 extension and continue the 5th sub wave down to around the 22500 area.
If this is correct then I would be looking for signs of the start of wave 5 and entry points.
Thanks.
Comment:
DJI seems to have made the fourth sub wave and looks to be coming down for the fifth wave now. Sub Wave 4 seems to have terminated directly at the end of sub wave 1 which is promising, considering that it did not cross price area. This count may still be valid, however I do not expect price to fall all the wave to where I initially thought wave 5 would finish. This may form a truncated fifth or close to one. From there, I would expect the fourth wave to be made and finish close to the trendline.
Comment:
This has good opportunity for a short trade, stops could go just above the end of subwave one as if the price goes higher then the count is incorrect. Targets could go down to the area of subwave 3 and you could manage them to lower areas if price action looks strong.