In this Scenario #2, I have been saying that it is unfolding in a very complex manner. Most likely in an ABC Zigzag-type corrective pattern. Here is the chart from my previous post on this:
The difference now and the reason for this update is to show you what I now see as a ABC 5-Triangle-5 correction where wave (B) is a . Within any corrective wave, the wave (B) itself is also a corrective pattern and therefore can also have a tendency to unfold in a complex way itself. That's what we are seeing here. Wave (B) is unfolding in a complex .
Furthermore, within this triangle itself, prices are making many complex moves. This is why there is so much confusion among traders as to what is happening. With the wave (B) triangle, there are triangles. And right now, I believe prices are in a contracting triangle within a smaller wave (b) of the C leg of the larger Wave (B) triangle. When this smaller contracting triangle completes, we will have a wave (c) down into the lower TL of the larger Wave (B) triangle and this will complete the c leg of that triangle.
There are 2 patterns that could be marking the end of that c leg of the wave (B) triangle. One is a and the other is a . They both would complete RIGHT AT the lower TL and they both complete right on top of each other. How's that for confluence?
4HR CHART - Overview Of Unfolding Complex Wave 4 Correction
Here's what all this look like with updated price action and my adjusted wave counts on a larger time frame....
MY TRADE PLAN
I am going to wait until this smaller wave (b) triangle completes before I do anything. It's completion would serve to further confirm what I am seeing is happening. When prices do complete the triangle, I will be looking at price action to go SHORT to get the decline to the bottom TL of the wave (B) triangle. And there, I will look to close this SHORT position and look to go LONG.
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Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
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