On 1-hour chart, strong wave moves up which can be subdivided into 5 waves, its labeled wave I. Next correction has ABC zigzag pattern (labeled wave II) with wave B is flat pattern. Now i try to forecast the termination of C leg.
Usually, in zigzag, C leg equals to A leg. In this case, if C leg terminated at level which equals to A leg (about level 1.10034), the Fibs retracement level of wave II will be equal to 50% of wave I.
Zoom in 15-min chart to examine C leg, It likely has full 5 waves structure. That means C leg may be going to end and can not move down further. Also, the volume of sub wave 5 of C is very low meaning of the correction phase going to end.
Assume that wave C has ended now, at this level, C leg equals to 0.618 fibs of A (this is also common Fibs relation between A and C of zigzag), and wave II equals to 0.382 Fibs of wave I.
The trading plan is waiting for price breaks above sub wave iv of C leg (about 1.10397) then go long.
Stop loss at the extreme of C.
Profit at least 0.618 length of wave I.
Thank for any feed back!
Usually, in zigzag, C leg equals to A leg. In this case, if C leg terminated at level which equals to A leg (about level 1.10034), the Fibs retracement level of wave II will be equal to 50% of wave I.
Zoom in 15-min chart to examine C leg, It likely has full 5 waves structure. That means C leg may be going to end and can not move down further. Also, the volume of sub wave 5 of C is very low meaning of the correction phase going to end.
Assume that wave C has ended now, at this level, C leg equals to 0.618 fibs of A (this is also common Fibs relation between A and C of zigzag), and wave II equals to 0.382 Fibs of wave I.
The trading plan is waiting for price breaks above sub wave iv of C leg (about 1.10397) then go long.
Stop loss at the extreme of C.
Profit at least 0.618 length of wave I.
Thank for any feed back!