RMR: Elliott impulse wave finishing, correction wave incoming?
Hi. I've plotted a resistance zone that's been prevalent since the start of the year. I've also plotted some Elliot waves: some past, some current and some incoming.
The recent Three Drives pattern is over and unfortunately I didn't recognize it in time. But a good question then is what's next?
Well there is a clear impulse wave occurring at the moment. The high price difference between the MA 56 and close price strongly indicates that the impulse wave will continue to finish wave 3 and 4. The exact time when this will happen is uncertain, the price on point 5 is just an example.
But this means a correction wave is incoming when the impulse finishes.
There are two decent position to make if you believe the impending waves are probable:
This does not constitute financial advice. Any projected prices, even if explicitly stated, are made with intent to discuss the symbol and potential interpretations. Any trades shown or mentioned are examples and neither recommendations or mandates.
The recent Three Drives pattern is over and unfortunately I didn't recognize it in time. But a good question then is what's next?
Well there is a clear impulse wave occurring at the moment. The high price difference between the MA 56 and close price strongly indicates that the impulse wave will continue to finish wave 3 and 4. The exact time when this will happen is uncertain, the price on point 5 is just an example.
But this means a correction wave is incoming when the impulse finishes.
There are two decent position to make if you believe the impending waves are probable:
- When the current impulse wave has finished there is a good timing for a short position to profit off of the correction wave.
- When that correction wave is complete there will most likely be an impulse wave. A long position when this is apparent or a long position on the B point of that wave could both be decent.
This does not constitute financial advice. Any projected prices, even if explicitly stated, are made with intent to discuss the symbol and potential interpretations. Any trades shown or mentioned are examples and neither recommendations or mandates.
Comment:
Keep in mind that points 3,4 and 5 in the ongoing impulse wave are placed on price assumptions. Point 3 is clearly continuing to increase in length, but the rest of the idea could still play out if/when point 4 starts emerging.