Friends,
IWM has been trading along a bearish sentiment. But using cycles we get a different picture completely
I discovered some other interesting things!. I discovered 2 "cycles" and plenty of harmonic moves.
Cycle 1 is being repeated completely harmonically to cycle 2 but the other way around! Creating brilliant. symmetry and a safer trading opportunity.
Cycle 1- Move began, retraced and hit 1.272 Fibonacci extension. This took 116 days to complete to the highest point.
Cycle 2- Move began, retraced and hit 1.272 Fibonacci extension, This level was achieved on day 98. And has been in a bearish sentiment until now, where the stochastic is currently oversold
Since cycle 2's target was hit it has been bearish. I'm expecting a small move up and a move down within the 116 day cycle, which would make perfect sense since every move in both cycles is entirely harmonic. Likelihood is that history will repeat itself and continue how i've drawn in on the chart.
It's worth noting that the current replicated move of the previous cycle falls into a demand zone.
We now know that a trading decision to the downside is going to be a solidified decision, since we have the harmonic moves of this pattern that have thus far fallen perfectly true.
It's also worth noting the next target of the harmonic move would be 38.2 retracement of the previous swing.
As the rule states, in markets, history repeats itself.
All the best
Tom
IWM has been trading along a bearish sentiment. But using cycles we get a different picture completely
I discovered some other interesting things!. I discovered 2 "cycles" and plenty of harmonic moves.
Cycle 1 is being repeated completely harmonically to cycle 2 but the other way around! Creating brilliant. symmetry and a safer trading opportunity.
Cycle 1- Move began, retraced and hit 1.272 Fibonacci extension. This took 116 days to complete to the highest point.
Cycle 2- Move began, retraced and hit 1.272 Fibonacci extension, This level was achieved on day 98. And has been in a bearish sentiment until now, where the stochastic is currently oversold
Since cycle 2's target was hit it has been bearish. I'm expecting a small move up and a move down within the 116 day cycle, which would make perfect sense since every move in both cycles is entirely harmonic. Likelihood is that history will repeat itself and continue how i've drawn in on the chart.
It's worth noting that the current replicated move of the previous cycle falls into a demand zone.
We now know that a trading decision to the downside is going to be a solidified decision, since we have the harmonic moves of this pattern that have thus far fallen perfectly true.
It's also worth noting the next target of the harmonic move would be 38.2 retracement of the previous swing.
As the rule states, in markets, history repeats itself.
All the best
Tom