Price Action in Nasdaq 100 is showing up an ending diagonal pattern (Wave 5 of 3)
Typically ending diagonal moves in 3-3-3-3-3.
Currently we are in the last smaller motive higher of the 3. It looks like a throw over pattern as price broke upwards of the diagonal.
Currently pending short as we wait for the last C movement to exhaust. (Wait for a bearish candle).
Typically ending diagonal moves in 3-3-3-3-3.
Currently we are in the last smaller motive higher of the 3. It looks like a throw over pattern as price broke upwards of the diagonal.
Currently pending short as we wait for the last C movement to exhaust. (Wait for a bearish candle).
Comment:
By Elliot Wave rules, Wave B-C (Wave 3), cannot be the shortest wave.
Therefore :
Wave 1 = 5896 - 5351 = 545
Wave 3 = 6010 - 5587 = 423
Wave 5 thus cannot exceed 423 points. - 5849 + 423 = 6272 points.
Our Stop loss will be set at 1.5% above 6272 to cater for volatility and slight errors in accuracy. Stop Loss will be set at 6370.
Therefore :
Wave 1 = 5896 - 5351 = 545
Wave 3 = 6010 - 5587 = 423
Wave 5 thus cannot exceed 423 points. - 5849 + 423 = 6272 points.
Our Stop loss will be set at 1.5% above 6272 to cater for volatility and slight errors in accuracy. Stop Loss will be set at 6370.
Comment:
We got a nice little red pin bar on the daily for yesterday, which reversed close to our maximum range allowed.
We should see a steep sell off in the next few days/weeks as price action accelerate downwards. Base on an ending diagonal, prices should swiftly retrace one degree more than the start of the pattern.
Enter my remaining 1/2 short at yesterday's close of 6248.
We should see a steep sell off in the next few days/weeks as price action accelerate downwards. Base on an ending diagonal, prices should swiftly retrace one degree more than the start of the pattern.
Enter my remaining 1/2 short at yesterday's close of 6248.
Comment:
Currently still holding short with SL set at 6370
I'm using futures to minimize carry cost
I'm using futures to minimize carry cost
Comment:
Since wave 3 can't be the shortest wave. I'm abit jittery about what is being played out. (Currently it looks like wave 3 is the shortest). Some other patterns could be at play. Nevertheless, since we have set our SL at 6370, we will see how it plays out.
Since wave 3 can't be the shortest wave. I'm abit jittery about what is being played out. (Currently it looks like wave 3 is the shortest). Some other patterns could be at play. Nevertheless, since we have set our SL at 6370, we will see how it plays out.
Comment:
Day 7. its basically a waiting phase now.
I've went back to look at the chart and ruled that it cannot be an impulse, as wave 4 would have crossed into the territory of wave 1 (This is typical of identifying a diagonal as well).
I'm still quite peeved by the fact that wave 3 looks like the shortest wave. One explanation I could possibly get is to calculate is base on % terms instead of the absolute increase in points. This would stretch the current wave 5 to the maximum of the top put in on 7Nov, roughly an 8% increase in my calculations
I've went back to look at the chart and ruled that it cannot be an impulse, as wave 4 would have crossed into the territory of wave 1 (This is typical of identifying a diagonal as well).
I'm still quite peeved by the fact that wave 3 looks like the shortest wave. One explanation I could possibly get is to calculate is base on % terms instead of the absolute increase in points. This would stretch the current wave 5 to the maximum of the top put in on 7Nov, roughly an 8% increase in my calculations
Comment:
Day 8, Is the sell off finally upon us.. ? It came within 19 points to my SL.. -_-
If the selling continues, we might get a bearish extinguishing on the daily. But let's not get too excited yet. Need for a close below 6300 level for today's candle.
Go bears!!
If the selling continues, we might get a bearish extinguishing on the daily. But let's not get too excited yet. Need for a close below 6300 level for today's candle.
Go bears!!
Comment:
Yawn.. Patience is a virtue. Wait.
Comment:
Closing my short position, as wave 3 cannot be the shortest wave.
I think some other pattern might be in play.
I think some other pattern might be in play.
Entering 1/2 position short at 6250.