Identifying the bottom of price for Reversal
One of the challenges for the trader is to identify where and when is the bottom for Reversal of price action. If there are more room for decline and significant PIPs, then Sell Short and later at Reversal Buy Long.
With the construction of trendline, Support and Resistance, Pitchfork and guided by Elliott Wave ABCDE, we can see the current price action in downtrend.
The geometrical construction guides the price action movement of possible path.
It is unwise to make prediction on the exact timing and location of the bottom, but rather we need to observe at smaller timeframe the formation of price action structure that can give signals of end of the downtrend and reversal.
It is useful to have the concept that every new formation starts are nuclear level. Just like child growth healthy or not, starts with the foetus development.
Hence at the lower timeframe e.g. 5 min or 1 min, at the nuclear level, we observe the formation of the price action structure to detect change in momentum and direction.
With the construction of trendline, Support and Resistance, Pitchfork and guided by Elliott Wave ABCDE, we can see the current price action in downtrend.
The geometrical construction guides the price action movement of possible path.
It is unwise to make prediction on the exact timing and location of the bottom, but rather we need to observe at smaller timeframe the formation of price action structure that can give signals of end of the downtrend and reversal.
It is useful to have the concept that every new formation starts are nuclear level. Just like child growth healthy or not, starts with the foetus development.
Hence at the lower timeframe e.g. 5 min or 1 min, at the nuclear level, we observe the formation of the price action structure to detect change in momentum and direction.
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