Long

The market is moving towards the channel support line.

FX:SPX500   S&P 500 Index
57 0
Hello everybody. The market is moving towards the channel support line. Wave 3 is completed. Now here comes the process of forming a tapering triangle 4. 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. Therefore, the tapering triangle 4 will be positioned horizontally and the time of its formation will be slightly smaller than that one of the expanding triangle 2. The values of wave 2 and 4 must be related by Fibonacci on the time scale. But I think it does not happen. The matter is that the waves 1 and 3 must be related by Fibonacci on the time scale. But pay attention to the chart please. Here wave 3 has not reached the desired Fibonacci level. Therefore, I think the wave 4 will be completed near the level of Fibonacci 0.764.The exact ratio of waves 2 and 4 we will not see. The structure of the wave 4 tells us the time of its completion. I am showing all the tiny details of wave 2. Expanding triangle 2 received the distortion during its formation. Here wave C has not reached the desired level. On the chart the E-mini s&p500             market did not cover the required level .Ten points. I made them conditionally. Look what happened. Now, wave 2 is a classic expanding triangle. In the Expanding triangle 2 the total amount of all the waves is equal to 21.3+5+3+5+5 =21 is a Fibonacci number. But that's not all I wanted to say. The fourth wave never reaches the price range of the second wave, in other words, waves 2 and 4 in the trend should never overlap. At this point in the chart, we see a violation of this rule. I do not like it , but another explanation of the situation I do not see. Expanding triangle 2 received the distortion during its formation. I want to say that at this place in the chart, we see a tapering triangle. But it will be distorted, too. I wish you good luck in your business transactions.
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