WHAT'S HAPPENING NOW - More Consolidation?
What you see in the main chart above is that what my wave count is telling me is that wave iii of v has already started after a very complex wave ii. Yes, prices are now AGAIN bumping its head on a solid that confined wave ii (that being the BAMM line of the POTENTIAL seen on the ) and some may see that as a sign that still more downside consolidation is forthcoming. Well, yes and no. Yes in the sense that I also think prices will again bounce off that resistance and decline BUT not as part of the previous consolidation but as part of a wave 2 of iii retracement. On the chart above, I show that wave iii has started and the recent leg up was wave 1 of that wave iii . That means that the current possible down move will be short-lived as a wave 2 of iii . After which of course may be the much-anticipated wave 3 of iii . I have identified a POTENTIAL with one D point at the .786 and the other at .886. If prices do fall and complete the , that may mark the end of the wave 2 of iii and mark the start of wave 3 of iii .
However, should prices advance and continue higher from here breaking the high of wave 1 and subsequently breaking the resistance at the BAMM line of the bat, that will be a sure sign that wave 3 of iii is underway and we will see significantly higher prices.
OVERVIEW - Monthly Chart
WEEKLY CHART - Breaking Down Wave (C)
Wave (C) of the ABC corrective wave shown in the above monthly chart is underway. Prices are now in wave (2) of the expected 5 waves of wave (C). In that wave (2), it is unfolding probably as a BC pattern that will take prices sharply higher to retrace the wave (1). Within that ABC wave (2), wave (c) has probably already started. There is also a POTENTIAL pattern whose D point may represent the ending of the wave (c). It's D point is well within the "Goldilocks Reversal Zone" as well which is the probable area where prices may retrace wave (1) and reverse from there.
DAILY CHART - How The Current Correction Up Is Unfolding
The larger wave (2) shown on the weekly chart (green) above is probably unfolding in a ABC 5-3-5 pattern with prices now in the 5-wave (c) wave and most likely already starting wave iii of v..
4HR CHART - Wave ii May Have Finished And Wave iii Begun
The wave ii unfolded in a VERY complex abc pattern with 2 expanding triangle patterns. This kind of correction is extremely difficult to see and probably confused A LOT of traders (including myself) as to what was happening! But thankfully, it may be over and the ensuing wave iii of v may have begun.
CONCLUSION AND MY TRADE PLAN
Nothing much to say here. I'm just waiting to see how things unfold before I jump into any new trade. Two things I will look for: 1. prices to break through the BAMM line (which is also a MAJOR SR Level) in which case I will then look for a good chance to get LONG or 2. prices to complete the and then I will get LONG.
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Thanks for sharing,
my count matches yours, just one thing maybe you need to consider the last leg up (wave 1 of wave 3) up is a leading diagonal 5,3,5,3,5, we had a normal wave 1 and wave three (non extended), statistics wise there is a tendency to have extended wave 5 before 2 starts, please let me know what you think,
Thanks for the comment and alternate POV. GL!