My global EWA ( Elliott Wave Analysis) view for the Nasdaq index suggests that after the corona flashcrash (Feb, 20 - Mar 23 in 2020) a flat correction formed and index started a new wave.
For now I'll only consider the current wave, because the question of the highest degree can take us to another discpurse, which at the moment are of secondary importance.
So, I guess that Nasdaq from Mar 23, 2020 till Sep 2, 2020 formed Wave (1) ended at 12465.25 and after fast ABC correction ended
at 10656.5 in Sep 21, 2020 started Wave (3). First of all I want to note that I know that a lot of elliotician like to describe further movement
as truncated zigzag or something else, but I decide not to break the rules of Elliott Wave Principles and count next initial wave as leading diagonal with flat correction ended at 10942.25 in Nov 2, 2020.
In case of flat correction as wave 2 of (3) we can't get overlap with wave 4 ended at 12207.25 in Mar 5, 2021 because high of wave 1 of (3) ended at 11604.75 in Oct 2, 2020.
In the period from Mar 5, 2021 till Nov 21, 2021, a full-fledged wave (3) was formed, in which each subsequent wave has an extension (5>3>1).
I also built a channel between the top of the 1st and 3rd waves to the 2nd and at the moment we have a good price reaction bounce with pinbar from the border of this channel.
I can assume that the price decline (from 16767.5 Nov 22, 2021 till 15669 Jan 10, 2022) has formed a complete correction in the form of a flat.
We have good support level at 15180 which formed in Jul - Aug 2020 + ema100 reaction as dynamic support also.
At the moment I expect that the price will start forming the final 5th wave of this impulse. Presumably the price can reach the level 1.618 extension of the previous higher degree wave.
BTW, we must consider the following:
- current flat can be included in the combination and complicate the possible corection
- as we know in case of last 5th wave of impulse may be variability from the classic impulse to the ending diagonal , which will not be easy to trade due the increased volatility .
For now I'll only consider the current wave, because the question of the highest degree can take us to another discpurse, which at the moment are of secondary importance.
So, I guess that Nasdaq from Mar 23, 2020 till Sep 2, 2020 formed Wave (1) ended at 12465.25 and after fast ABC correction ended
at 10656.5 in Sep 21, 2020 started Wave (3). First of all I want to note that I know that a lot of elliotician like to describe further movement
as truncated zigzag or something else, but I decide not to break the rules of Elliott Wave Principles and count next initial wave as leading diagonal with flat correction ended at 10942.25 in Nov 2, 2020.
In case of flat correction as wave 2 of (3) we can't get overlap with wave 4 ended at 12207.25 in Mar 5, 2021 because high of wave 1 of (3) ended at 11604.75 in Oct 2, 2020.
In the period from Mar 5, 2021 till Nov 21, 2021, a full-fledged wave (3) was formed, in which each subsequent wave has an extension (5>3>1).
I also built a channel between the top of the 1st and 3rd waves to the 2nd and at the moment we have a good price reaction bounce with pinbar from the border of this channel.
I can assume that the price decline (from 16767.5 Nov 22, 2021 till 15669 Jan 10, 2022) has formed a complete correction in the form of a flat.
We have good support level at 15180 which formed in Jul - Aug 2020 + ema100 reaction as dynamic support also.
At the moment I expect that the price will start forming the final 5th wave of this impulse. Presumably the price can reach the level 1.618 extension of the previous higher degree wave.
BTW, we must consider the following:
- current flat can be included in the combination and complicate the possible corection
- as we know in case of last 5th wave of impulse may be variability from the classic impulse to the ending diagonal , which will not be easy to trade due the increased volatility .