Today we will talk about ICON cryptocurrency in which we are tracking the final wave C that can be completed within a bigger ending diagonal (wedge) pattern, where ideal support would be around 0.50 - 0.40 area, where we also see 161,8% Fibo. extension target of wave A.
An ending diagonal a.k.a wedge pattern is a type of pattern that can occur at the completion of a strong move. It reflects a “calming” of the market sentiment such that price still moves generally in the direction of the larger move, but not strongly enough to produce an impulsive wave. Ending diagonals consist of five waves, labeled 1-2-3-4-5, where each wave subdivides into three legs. Waves 1 and 4 overlaps in price, while wave 3 can not be the shortest amongst waves 1, 3, and 5.
As you can see ICXUSD can be trading in final stages of wave "v" of C, but final subwave (c) of "v" is still missing, so watch out for that final drop, maybe even a spike before bulls show up.
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ICXUSD Update: Despite recent bigger intraday recovery, the wave structure still looks corrective, ideally as part of a bigger bearish running triangle within wave "iv", so still be aware of a retest of the lows and 0.50 - 0.40 support are for wave "v" of C before a bullish reversal.
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ICXUSD is making a bigger recovery, so we have slightly changed the count, but direction remains the same. ICX can be still can be nearing important 1.3 – 1.5 resistance zone within a three-wave a-b-c correction for wave B, so here as well be aware of a strong reversal down back to lows for wave C, which can send the price even down to 0.30 strong support area.
I don't want to disparage here. However I've been counting EW waves for years and would have to disagree with your count. I've not seen any other examples of such a long wave 1 and short wave 2 and long developing wave 5 in this manner. You just posted a Nat Gas count that is a similar shape and I would say a similar count that looks much more reasonable.
ew-forecast
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@peterdcharlebois, even if it's not an ending diagonal, it can be still as part of a bigger sideways bearish running triangle pattern. The point is that the price action is slow and sideways waves structure which indicates for a corrective movement.
@ew-forecast, if this plays out big respect. Therefore BTC would need to suffer heavy pullback soon...
ew-forecast
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@Tradermariano, yes, in our opinion BTC is still in a correction within downtrend, so sooner or later we can expect another decline.
thecuriouscatapult
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@Tradermariano so all this is based on your stance that this is a downtrend correction and not reversal? what basis do you have at this early point in the shift to say it one way or another without giving charts for both scenarios and disclosing it could play it either way and it's too early to say.
ew-forecast
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@thecuriouscatapult, Notice that price still did not manage to take out the June 22 low, so based on sub-structure the wedge appears incomplete. Another low is missing to complete the shape, based on the theory. Also, it's too soon to call that a reversal when resistance line of a wedge still holds, but we may change the bias if line is broken decisively. We assume rise will come, it may not be far away, but think it's worth to be cautious here and manage entries/risk carefully.