Pattern: Ending Diagonal (these formations are analogous to the extension of an impulse wave)
Proper action: I will be watching 38k before buying more
Target : $ 41500
Stop loss: $ 34000
Nov 15, 2023 Comment:
Sometimes I add a bit to what I have thought.
Wave 5 has two different relationships:
1- If wave 3 is less than 161.8% of wave 1 -----> the 5th Wave overextends itself.
2- If Wave 3 is greater than 161.8% of wave 1 -----> Wave 5 = 100% , 161.8% or 262% of wave 1
As shown on this chart, wave 3 is less than 161.8% of wave 1, as a result,...
A laborious proof:
Motive Waves (If my analysis is correct ...):
Wave X (blue): The rise from 2020 to 2021 was wave X (keep it simple!).
Corrective Waves (Expanded Flat):
Wave A (black): (Apr-Jun) 2021 was a "A" wave (Wave A = 61.8% of Wave X).
Wave B (green): Wave B terminates about at the level of the beginning of wave A (Wave B = 123.6% of Wave...
According to my understanding, wave 5 terminates well beyond the beginning of wave 4 (wave 5 is still not complete)
In this chart above, wave 3 is less than 161.8% of wave 1, as a result, the 5th wave overextends itself.
How often does this happen? Our "experience" tells us that it happens (very often).
Target : $ 42000 - $ 45000
As you can see, the first wave is home to the bull whales.
Technical Section (Wave 5, Lesser Degree):
As shown on this chart, wave 3 is less than 161.8% of wave 1, as a result, the 5th wave overextends itself. We'll see.
Extended Wave 5 = either
61.8% x length (beginning of Wave 1 to top of Wave 3)
= 100% length of (beginning of Wave 1...