Price has been consolidating with pivot lows near the 0.786 fib level since may of 2013. During this consolidation there has also been a series of contracting pivots around key fib levels. This is demonstrated by the green, yellow and pink lines. Each wave is a simple up and down followed by up. The current wave is completing the down which may be followed by an up. I will be looking for this up to test the center ML of fork b near term. I have a long target near 3.60 with a stop at 2.30. This yields a 3.8 R/R ratio for this trade.
Comments
littleriver
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Here is what happened. Caught looking up when I should have been looking down with trend. Price below both median lines of both forks. Test of center median line of fork A in progress. Failure and there is a high probability we see the lower MLH of fork A.
littleriver
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After looking at this a bit more, i made a slight change to the triangle. I think this chart better represents what is happening.