Today, we will take a look at Square INC.
The main context for the price is the previous corrective structure (white lines). In August, the price apparently made a breakout which then got back into the structure once again, creating a secondary structure (yellow lines)
We always work with the idea that the price moves between zones of the same degree, so, in this case, we expect the price to reach the lower zone of the current structure (support level)
IF that happens, we want to observe a breakout of the inner trendline (white line inside the yellow structure). IF that happens, we will wait for a small retest, and then we expect a bullish movement towards the higher zone of the current correction (shared area between the primary and secondary corrective patterns.)
The filters we are using to validate our view are:
a) Contact with the support level
b) Breakout of the inner descending trendline
c) retest
IF all the previous items are true, then:
d) Wait for a bullish impulse towards the higher zone of the correction if we observe a clear breakout of the small retest we are looking for.
Thanks for reading! Feel free to add your view/chart or any comment about this. ;)
The main context for the price is the previous corrective structure (white lines). In August, the price apparently made a breakout which then got back into the structure once again, creating a secondary structure (yellow lines)
We always work with the idea that the price moves between zones of the same degree, so, in this case, we expect the price to reach the lower zone of the current structure (support level)
IF that happens, we want to observe a breakout of the inner trendline (white line inside the yellow structure). IF that happens, we will wait for a small retest, and then we expect a bullish movement towards the higher zone of the current correction (shared area between the primary and secondary corrective patterns.)
The filters we are using to validate our view are:
a) Contact with the support level
b) Breakout of the inner descending trendline
c) retest
IF all the previous items are true, then:
d) Wait for a bullish impulse towards the higher zone of the correction if we observe a clear breakout of the small retest we are looking for.
Thanks for reading! Feel free to add your view/chart or any comment about this. ;)