The x-wave can also be a complex correction – a double or a triple combination on its own. So, in this case, if this a-b-c is a simple correction, then there is no x-wave and the market must go like this.
But let’s assume that this is the end of the x-wave, right here, and then the market goes a-b-c. The price action that follows fails to fully retrace the c-wave in less than the time it took the market to form and the market goes like this. If we take 61.8% from here to here, we see that this x-wave actually fails to retrace more than 61.8%. It means that this is a complex correction, one with a small x-wave. Whenever you here this, the first thing to consider is a double or a triple combination because they are the most common ones. Or, a double zigzag or a triple zigzag.
#Trade With your plan
But let’s assume that this is the end of the x-wave, right here, and then the market goes a-b-c. The price action that follows fails to fully retrace the c-wave in less than the time it took the market to form and the market goes like this. If we take 61.8% from here to here, we see that this x-wave actually fails to retrace more than 61.8%. It means that this is a complex correction, one with a small x-wave. Whenever you here this, the first thing to consider is a double or a triple combination because they are the most common ones. Or, a double zigzag or a triple zigzag.
#Trade With your plan