Hey guys,
So, XRPUSD had a dreadful dreadful retracement down from its high of over $3. We seem to have made a solid bottom though and are moving smoothley!!
Our Wave 1 broke up nicely with a 22% gain in price, and then we had a fairly deep correction on Wave 2 going even lower than the 0.786 Fibonacci Retracement . I count a full 5 Waves up to complete our wave 3 and it hits the 2.618 Fibonacci Extension exactly !
We have been consolidating in this zone, and what I previously might have called as an ABC Correction has now formed what looks like a Symmetrical Triangle ABCDE Corrective Pattern. This retraced past the 0.236 almost hitting the 0.382 which is in line with the Alternation of Wave degree between Waves 2 and 4 since Wave 2 was such a deep correction it makes perfect sense for Wave 4 to be shallower. And also since Wave 2 was a simple Corrective Pattern, Wave 4 being a Complex Corrective Pattern also follows Elliot Wave Guidlines very nicely!!
We have finished the correctional pattern and have already completed Subwaves 1-3 of our wave 5.
Our Wave 2 corrected to the 0.618 fibb and landed in the Golden Pocket, so by the rule of Alternation Subwave 4 should have a shallower correction. The 0.236 to 0.5 fibb range, with 0.5 being on the lower end of the spectrum. It should retrace between $0.71 and $0.70.
My target for Wave 5 is 3.618 Fibonacci Extension around $0.81, and then afterwards we should see a retracement to around the 0.5 Fibonacci at $0.63. This is because the ABC retracement for the entire wave structure usually lands within the Wave 4 range of the preceding wave structure!
I've posted Fibonacci extensions and retracments so you can extrapolate your own data from my points and to visually see what I'm talking about.
I hope the chart isn't too cluttered and that you enjoyed my analysis. Please always remember that targets are not set in stone and to always practice proper risk management! Happy trading!
Previous Chart:
So, XRPUSD had a dreadful dreadful retracement down from its high of over $3. We seem to have made a solid bottom though and are moving smoothley!!
Our Wave 1 broke up nicely with a 22% gain in price, and then we had a fairly deep correction on Wave 2 going even lower than the 0.786 Fibonacci Retracement . I count a full 5 Waves up to complete our wave 3 and it hits the 2.618 Fibonacci Extension exactly !
We have been consolidating in this zone, and what I previously might have called as an ABC Correction has now formed what looks like a Symmetrical Triangle ABCDE Corrective Pattern. This retraced past the 0.236 almost hitting the 0.382 which is in line with the Alternation of Wave degree between Waves 2 and 4 since Wave 2 was such a deep correction it makes perfect sense for Wave 4 to be shallower. And also since Wave 2 was a simple Corrective Pattern, Wave 4 being a Complex Corrective Pattern also follows Elliot Wave Guidlines very nicely!!
We have finished the correctional pattern and have already completed Subwaves 1-3 of our wave 5.
Our Wave 2 corrected to the 0.618 fibb and landed in the Golden Pocket, so by the rule of Alternation Subwave 4 should have a shallower correction. The 0.236 to 0.5 fibb range, with 0.5 being on the lower end of the spectrum. It should retrace between $0.71 and $0.70.
My target for Wave 5 is 3.618 Fibonacci Extension around $0.81, and then afterwards we should see a retracement to around the 0.5 Fibonacci at $0.63. This is because the ABC retracement for the entire wave structure usually lands within the Wave 4 range of the preceding wave structure!
I've posted Fibonacci extensions and retracments so you can extrapolate your own data from my points and to visually see what I'm talking about.
I hope the chart isn't too cluttered and that you enjoyed my analysis. Please always remember that targets are not set in stone and to always practice proper risk management! Happy trading!
Previous Chart: