Elliott Wave Rare Expanding Diagonal potential
when a diagonal pattern forms our structure changes to 3-3-3-3-3 instead of 5-3-5-3-5.
Im counting ABC zig zag formations in the first 3 waves which leads me to believe an ending diagonal pattern is taking place.
Im seeing wave 3 completed at 2432 area and because our trend line from wave 1 to 3 is expanding this gives us an indication of a deep wave 4 correction to expand the bottom trend line. In an expanding diagonal wave 4 must be bigger than wave 2
after Wave 4 we will have wave 5 that will break the highs of wave 3 and hit our upper trend line
After Wave 5 lookout for the crash where we could go as low as 1600 as after and ending diagonal price usually goes back to where the patten started.
This is long term analysis taking place over the next 6-12 months.
This is purely technical analysis not taking any war or interest rate decisions into account we are merely following the waves of the market
Im counting ABC zig zag formations in the first 3 waves which leads me to believe an ending diagonal pattern is taking place.
Im seeing wave 3 completed at 2432 area and because our trend line from wave 1 to 3 is expanding this gives us an indication of a deep wave 4 correction to expand the bottom trend line. In an expanding diagonal wave 4 must be bigger than wave 2
after Wave 4 we will have wave 5 that will break the highs of wave 3 and hit our upper trend line
After Wave 5 lookout for the crash where we could go as low as 1600 as after and ending diagonal price usually goes back to where the patten started.
This is long term analysis taking place over the next 6-12 months.
This is purely technical analysis not taking any war or interest rate decisions into account we are merely following the waves of the market
Comment:
approaching entry of 2303 need clean breakout be aware of a takeout wait for 4hr candle closure
My analysis tells me the market needs a correction before we go higher.