To understand this idea, you have to look at my previous EW count (linked below) if you haven't already seen it.
So, as you know, we wanted to see the low of the wick (41k) taken according to our EW count.
This was likely because we believed a wave 5 still wasn't put in.
This move down (from 52k) represents the wave 5.
And if you look at the daily chart, you can see that the bottom at 39.6k was completed in a 3 wave move, meaning we still need one more move down (wave 5).
Right now we are in a range with the low being at 40.5k (our SFP level) and the high at around 44.2k
If we break the range to the downside, it is likely that the wave 5 is being put in
We have nice confluence at 39.1-39.3k
However, if the range breaks to the upside, our invalidation point for this count is at 45,630.
We need to see a daily close above this level for our count to be invalidated, a wick doesn't invalidate it.
So for now watch the range (low at 40.5k - high at 44.2k)
39.1-39.3k area is important.
To the upside, 47-48k is still our key level.
Any questions?
Good luck traders
Remember not to break your rules
Habib
So, as you know, we wanted to see the low of the wick (41k) taken according to our EW count.
This was likely because we believed a wave 5 still wasn't put in.
This move down (from 52k) represents the wave 5.
And if you look at the daily chart, you can see that the bottom at 39.6k was completed in a 3 wave move, meaning we still need one more move down (wave 5).
Right now we are in a range with the low being at 40.5k (our SFP level) and the high at around 44.2k
If we break the range to the downside, it is likely that the wave 5 is being put in
We have nice confluence at 39.1-39.3k
However, if the range breaks to the upside, our invalidation point for this count is at 45,630.
We need to see a daily close above this level for our count to be invalidated, a wick doesn't invalidate it.
So for now watch the range (low at 40.5k - high at 44.2k)
39.1-39.3k area is important.
To the upside, 47-48k is still our key level.
Any questions?
Good luck traders
Remember not to break your rules
Habib
