Scale your view so that the orange circles intersect with the orange nodes (peak) and with the blue circles. You will notice the arcs act as a support for the waves.
I want to show my approach on how I look at declines after a rally. You can notice a resistance at those arcs. In this case, often the 4th down-move does break the circle towards the next one. Sometimes the circle is hit, sometimes the Fibo-Retracement.
In the short term we should be Long but once we reach the next Fibo-Arc it might be hard to have a quick recovery. Shall we break out of the circle more rapidly then this could be a short signal.
SL is the recent low. If we cross this then this is would be a bad sign as well.
I want to show my approach on how I look at declines after a rally. You can notice a resistance at those arcs. In this case, often the 4th down-move does break the circle towards the next one. Sometimes the circle is hit, sometimes the Fibo-Retracement.
In the short term we should be Long but once we reach the next Fibo-Arc it might be hard to have a quick recovery. Shall we break out of the circle more rapidly then this could be a short signal.
SL is the recent low. If we cross this then this is would be a bad sign as well.
Comment:
As oyu can see at the intersection is decision time. But watch out, as you can see what happened on Aug. 22.
Comment:
This chart has no relevance now. Interestingly we had a nice price concentration at the very last arc, in fact the local low at this area could count as a hit with the Fibo level of the arc.