Yeah you are right but be careful though, if you wait for a double top you might not get one and consequently miss an entry. I believe the chart is a daily chart (stochastics were too zoomed out thats why dropped to the daily :)
Ya, that is certainly a possibility. I would most likely look for signs of buyers failing to push the market further to the upside and wait for sellers to come back in. Let's see how this plays out. But at least we know that any selling opportunity around this region should not be avoided, since big players are very likely to be involved around this region :)
Hey Hamza, I just have one question, on what bases did you draw the fib extension from X to A. From what I see, point A is not the previous higher high. Shouldn't the A point be the highs of the green bullish candle, dating 2014-01-01. I just wanted some clarification on that :)
Good question. I did occur to me, but I honestly still believe it to be correct. If you zoom in on the weekly chart, you can see that price movement during those 2 months was clearly impulsive. After that a correction is visible. I would love to give you a quantifiable answer, but I just recognize it to be the first real impulse. what gave me extra confidence is the fact that price corrected very clearly at the 1.27, 1,414 (not drawn) fib extensions of that assumed XA. Hope that makes a bit sense?