- If you take a look at the first retracement from early June (in blue), you will notice that the breakout occured in the golden ratio region, & went way beyond the 0% level: A classic example of a in a market.
- The second retracement (in orange) is drawn from the breakout point of the previous retracement, up to the at 0%. Following the correction back to the 50%-61.8% region, the movement continued, however was not strong enough to go beyond the orange 0% level, which brings us to the 3rd retracement in green:
- Based on the previous 2 retracements, it is possible that we will have a short-term correction again down to the 50%-61.8% (marked with the red arrow), only to have the 3rd breakthrough (blue arrow), which is supposed to go beyond the orange 0%.
Please note the parallel positioning of all 3 in comparison to each other, which underlines the continuous of the upward trend.
I will be happy to find out what you think about this. Please let me know.