Beautiful textbook bullish impulse was spotted,
so let me walk you through
We can see bullish 5 waves sequence (white) on the chart
All waves are easily spotted and have clear structure
We have extended wave (3) white that consists of 5 sub-waves
Look at RSI's highest peak on wave 3 yellow of (3) white (vertical line)
it accurately follows the guideline
so you can spot the wave 3 of (3) in the future by finding the highest point on RSI
RSI clearly indicates waves (3) and (5) either
as it didn't print higher top while the wave (5) surpassed the maximum of wave (3)
This is called Bearish Divergence and it is a harbinger of cycle completion
within the current impulse
Another guideline is the trend channel composition
it has been built through 3 points: the troughs of waves (2) and (4) and top of wave (3)
The upside of the channel is the viable target for the wave (5)
so let me walk you through
We can see bullish 5 waves sequence (white) on the chart
All waves are easily spotted and have clear structure
We have extended wave (3) white that consists of 5 sub-waves
Look at RSI's highest peak on wave 3 yellow of (3) white (vertical line)
it accurately follows the guideline
so you can spot the wave 3 of (3) in the future by finding the highest point on RSI
RSI clearly indicates waves (3) and (5) either
as it didn't print higher top while the wave (5) surpassed the maximum of wave (3)
This is called Bearish Divergence and it is a harbinger of cycle completion
within the current impulse
Another guideline is the trend channel composition
it has been built through 3 points: the troughs of waves (2) and (4) and top of wave (3)
The upside of the channel is the viable target for the wave (5)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
