Hello Traders,
As we delve deeper into our market analysis, it's imperative that we pay attention to a commonly overlooked phenomenon in price action trading: the persistence of flat structures. These structures are fascinating because they offer both technical simplicity and profound insights into market sentiment.
They are easy to catch with the eye and offer a great accurate turning point when reaching the high or lows of A and C waves.
In the chart above we can see 3 flats, 2 regular and 1 contracting. The difference between the 2 is the following.
In a contracting flat:
Wave A is an impulsive wave retracing the impulse.
Wave B reverses wave A's movement but does not exceed the start of wave A.
Wave C is an impulsive wave in the direction of wave A, ending before the end of wave A, and not beyond the start of wave B.
In a regular flat:
Wave A is an impulsive wave retracing the impulse.
Wave B reverses wave A's movement and ends near the start of wave A but not beyond it.
Wave C is an impulsive wave in the direction of wave A, usually ending slightly beyond the end of wave A.
And it looks like #CNQ is making a regular flat to continue to bearish trend, look for sell setups!
As we delve deeper into our market analysis, it's imperative that we pay attention to a commonly overlooked phenomenon in price action trading: the persistence of flat structures. These structures are fascinating because they offer both technical simplicity and profound insights into market sentiment.
They are easy to catch with the eye and offer a great accurate turning point when reaching the high or lows of A and C waves.
In the chart above we can see 3 flats, 2 regular and 1 contracting. The difference between the 2 is the following.
In a contracting flat:
Wave A is an impulsive wave retracing the impulse.
Wave B reverses wave A's movement but does not exceed the start of wave A.
Wave C is an impulsive wave in the direction of wave A, ending before the end of wave A, and not beyond the start of wave B.
In a regular flat:
Wave A is an impulsive wave retracing the impulse.
Wave B reverses wave A's movement and ends near the start of wave A but not beyond it.
Wave C is an impulsive wave in the direction of wave A, usually ending slightly beyond the end of wave A.
And it looks like #CNQ is making a regular flat to continue to bearish trend, look for sell setups!