retracement to solid sellers with pullback =SELL it up1->4 : we have a solid downtrend, lower lows
and lower highs, the 3-4 push down cemets number
1 sellers as solid sellers, able to defeat the buyers
from number 2
4->7 : we return to the solid sellers at number 1
and get an initial bearish reaction, then
return to the number 1 resistance level
for a confirmation or perhaps not
what do I think will happen ?
* on the daily we are on a solid uptrend, but if
we look at almost 1 month now it's been a solid
downtrend, it makes sense for me then that maybe
its been long enough to not expect support to hold
and to wait for that to go hold, but to join the sellers at this point
* as far as chaos theory goes, it disagrees and believes we will hit stop loss before any thought
of heading down , regardless its a strong trade
* we have bearish rsi and mfi which helps, they are oversold at the number 7 high, as well as the number 5 high, if we draw a horizontal line, perfectly picks the number 7 rejection, although number 5 was not super special and buyers came in there so i'm not sure how helpful that is long term.
* as far as elliot wave goes we could have completed the fifth wave and are looking for a 3 wave retracement which helps us as we are aiming for the low at number 4
