If we have the low in place, the supply areas are created by 1:1 corrections during this mid-term downward trend.
Each of the areas can result in making a new low. Especially dangerous for the long positions may be:
Over each of the areas, there is a line in the corresponding color. Touching such a line by the price can be considered as invalidating the supply area.
Breaching the 114 level should open the path to 123. Overcoming 137 should open the path to ATH.
If the formation will be invalidated (a new low will be made below 90.1) the measurements should be repeated. This, however, does not invalidate the long scenario as described in the related idea.
Each of the areas can result in making a new low. Especially dangerous for the long positions may be:
- the blue area making the downward movement more like a 5 waves
- the overlap of red & orange areas where the setup for a running flat can be seen
Over each of the areas, there is a line in the corresponding color. Touching such a line by the price can be considered as invalidating the supply area.
Breaching the 114 level should open the path to 123. Overcoming 137 should open the path to ATH.
If the formation will be invalidated (a new low will be made below 90.1) the measurements should be repeated. This, however, does not invalidate the long scenario as described in the related idea.
