Hello traders!
As we can see from the chart, price completed five waves to the upside for what can be a leading diagonal for wave C of (B) to the upside, or a triple three in wave 2/B of (C) to lower lows (check the post below). We interpret the structure in this way since every wave up in this 5-wave structure was a three-wave, price overxtended creating divergences on smart money indicator and RSI.
In the chart above the label follows the bullish count (first one).
But both a leading diagonal both the bearish count will give us a relevant move to the downside.
This is the bearish count with the bearish patterns (red ascending broadening wedge and black wolfe wave).
We are short from @4055.2 with stop loss at @4084.5
Our first target that will cover both scenarios is 3920.
We will evalaute then possible lower targets in the bearish case 3720 and 3500.
As we can see from the chart, price completed five waves to the upside for what can be a leading diagonal for wave C of (B) to the upside, or a triple three in wave 2/B of (C) to lower lows (check the post below). We interpret the structure in this way since every wave up in this 5-wave structure was a three-wave, price overxtended creating divergences on smart money indicator and RSI.
In the chart above the label follows the bullish count (first one).
But both a leading diagonal both the bearish count will give us a relevant move to the downside.
This is the bearish count with the bearish patterns (red ascending broadening wedge and black wolfe wave).
Our first target that will cover both scenarios is 3920.
We will evalaute then possible lower targets in the bearish case 3720 and 3500.
Trade active:
Holding, interesting opening. 3900 is the key level at which FOMC will decide if the price will go for the bullish or the bearish count. Has reduced inflation hyped the expectations for a policy shift?
Trade active:
First target : 3900-3940 area. Confluence between bearish ascending broadening wedge (red) and small wolfe wave (black). Will partly tp there. Carefully observing if it will go there in a abc (wave 2 of c, bullish scenario) or 5-leg (bearish scenario).
Comment:
In the above chart the label is the bearish count. In the bullish the above triple three is a leading diagonal for wave i of C
Trade active:
stop loss on entry at @4055.6.
This structure can still finish with an ending diagonal (and thus another high).
This structure can still finish with an ending diagonal (and thus another high).
Trade active:
giving it some breath upon the close
Trade active:
closed at entry yesterday. Restriked @4070.5 this morning. Stop loss already moved on entry.
Our plan is to take most of profit if we get to the 3900-3940 area, and evaluate the price action to assess probabilities of different scenarios.
In the bullish scenario, the above 5 waves would be leading diagonal in wave C of (B) to the upside. In the bearish, these are a triple three correction as labeled below.
Our plan is to take most of profit if we get to the 3900-3940 area, and evaluate the price action to assess probabilities of different scenarios.
Comment:
Price can still complete structure with another high. If it kicks us at entry, we will reevaluate shorts at an higher high
