This scenario looks painfully familiar, as if I was burnt by this pattern before. I went back and checked and yes, I was burnt by it in January, when I was expecting a solid bounce up and instead the price dropped significantly (I was brand new to trading at the time).
I see here diagonal triangle type 2 by EW (I think 3 drive pattern is the same thing, pardon if I am wrong).
There is a bigger triangle (blue), which is pointing down and looks like a bear flag . It end with a smaller triangle (light green), which is clear on 15 min time frame, it's pointing up as a part of wave 5 of a bigger triangle.
By Wolfe wave theory, we should reach an area in the yellow circle (59-61). We Haven't reached it yet. Though caution, Wolfe wave fails sometimes.
At this point, we've reached Wolfe wave on a smaller triangle (purple arrow to area 57). By Wolfe , from here the price should decline.
I have 2 version here:
1) the price will correct just enough (around 53) to continue move upward to complete Wolfe wave for blue triangle and then going down again to around 40 or
2) Wolfe wave failure for blue triangle. In this case the price might go sideways before resuming the drop to the area around 40 (yellow arrow).
I see here diagonal triangle type 2 by EW (I think 3 drive pattern is the same thing, pardon if I am wrong).
There is a bigger triangle (blue), which is pointing down and looks like a bear flag . It end with a smaller triangle (light green), which is clear on 15 min time frame, it's pointing up as a part of wave 5 of a bigger triangle.
By Wolfe wave theory, we should reach an area in the yellow circle (59-61). We Haven't reached it yet. Though caution, Wolfe wave fails sometimes.
At this point, we've reached Wolfe wave on a smaller triangle (purple arrow to area 57). By Wolfe , from here the price should decline.
I have 2 version here:
1) the price will correct just enough (around 53) to continue move upward to complete Wolfe wave for blue triangle and then going down again to around 40 or
2) Wolfe wave failure for blue triangle. In this case the price might go sideways before resuming the drop to the area around 40 (yellow arrow).
Comment:
I should work on my timing in my charts. The numbers are still valid most of the time, but the timing is often wrong ...
Similar pattern. January 2018