Watching Head and shoulder pattern at the end of a 5 wave count in a possible diagonal. entry on break of C 47.7.
Structure change, I have removed my pending order from market.
diagonal still valid, wave 5 is an extended wave which means price should correct another 6% to 45 which is the bottom of wave 2 in the extended wave. I will be looking for short entries on low time frame next week and may reactivate higher time frame trade.
New market order placed.... Selling 1 position on break of low.
Hey. Your post 9 days ago: "Wave 5 is an extended wave which means price should correct another 6% to 45 which is the bottom of wave 2" Is there a rule for a 6% retracement somewhere or is it just because it coincides with the bottom of wave 2 in this instance? Also where did you read that rule? Thanks
yeah there is a guideline rule that price retraces aggressively to the bottom of wave 2, at least that is what I have read, ill dig it up and post the quote when I find it again. currently studying from a few EW books.
Book is "Visual guide to ellott wave trading, by Wayne Gorman and Jeffrey kennedy '' Quote page 232 " After a fifth-wave extension terminates, expect a swift and sharp reversal back to the second subwave of the extension."
Looks ok to me, but I must stress that im not experienced EW yet. Theory is to always try to find as many possible counts then eliminate as price develops. Good work thanks for sharing and all the best. :)