FX:SPX500 S&P 500 index of US listed shares
We are continuing to put pressure on the resistance line of the downstream channel. My assumption is confirmed. At this place in the chart I wanted to see a tapering triangle. However, I do not experience the illusions. In the article “A detailed description of the structure of triangular corrections. Part 1“ .I made the description of the model of the tapering triangle. In practice, the triangle rarely has the ideal properties. Usually, in the chart we see the narrowing process. It consists of five waves A,B,C,D and E. Triangle have never ideal forms. The tapering triangle which we are seeing now on the chart is a wave (4) in the count off the February lows. Tapering triangle (4) is slightly drawn to the bottom. Expanding Triangle (2) and tapering triangle (4) must be related by Fibonacci. Unfortunately, it did not happen. Here tapering triangle (4) has not reached the desired Fibonacci level. I think it can be explained. But the most important rules of the triangle are performed. It consists of five waves (A), (B), (C), (D), (E) and the narrowing process is clearly visible on the chart. And In spite of different inner corrections formation characteristics of the trend waves, but they have one common feature –inner triangles (2) and (4) are comparably sized which mean that they are well visible on the one time frame charts. I believe that tapering triangle (4) has been completed and we are already in the ascending wave (5). An interesting observation. Wave 1 is similar to the wave 1 which taken place on March 2nd, 2016. I wish you good luck in your business transactions.