All ingredients of the Elliott wave are present here.
- Wave two hit the 61.8% retracement and closed above. After this comes the confirmation for the start of wave 3 through divergence.
- Wave three may not be the shortest wave (check). Looking back to wave one, it is clear at that moment that it is actually wave three.
* An additional point that is clearly visible here is that the extension of this wave is the fibonacci ratio 1.618 of wave 1. The wave ended with divergence.
- Wave four hit the 38,2% retracement of wave three.
I am looking forward to see how this wave will develop. Because of the decisiveness and the extension in wave three I really want to see the scenario where wave 5 is about the length of a 61,8% from the total of wave one till three. A possible additional confirmation is that maybe divergence will occur at the end of wave 5. This has also happened at the end of wave 3
This analysis i made is to give insight into what can happen. There is no reason for me to take a position at this moment, because i first wants to see what will happen and if the rules will be respected.
- Wave two hit the 61.8% retracement and closed above. After this comes the confirmation for the start of wave 3 through divergence.
- Wave three may not be the shortest wave (check). Looking back to wave one, it is clear at that moment that it is actually wave three.
* An additional point that is clearly visible here is that the extension of this wave is the fibonacci ratio 1.618 of wave 1. The wave ended with divergence.
- Wave four hit the 38,2% retracement of wave three.
I am looking forward to see how this wave will develop. Because of the decisiveness and the extension in wave three I really want to see the scenario where wave 5 is about the length of a 61,8% from the total of wave one till three. A possible additional confirmation is that maybe divergence will occur at the end of wave 5. This has also happened at the end of wave 3
This analysis i made is to give insight into what can happen. There is no reason for me to take a position at this moment, because i first wants to see what will happen and if the rules will be respected.
Order cancelled:
Price has fallen too far and can therefore no longer meet the elliott wave as described above. A wave two can be put here, but no continuation of this in this idea. This idea is cancelled