This is a clear cut leading diagonal pattern. Above is a clearer wave count of the whole structure. Leading diagonal moves in 5-3-5-3-5 structure, unlike an ending diagonal, which is 3-3-3-3-3.
Since wave C cannot be the shortest wave, we estimate the current high at 1.757 is the top of this whole structure. If prices move beyond this level, we would have to relook at the whole wave structure again.
Typically leading diagonals has the longest wave 1 of the entire 5 wave move, which is true in this case. Several fibonanci projection levels and retracement also gels with the above chart.
Leading diagonals typically deeply retraces wave 1, 61.8% to 78.2% of the entire move. We are looking for a 3 wave bearish corrective structure to take place. Zig Zacks are quite common.Thus our take profit take is set between those levels.
Trade Idea :
Short at 1.751
Stop Loss, 1.758
Take Profit : 1.67 (First target)
Since wave C cannot be the shortest wave, we estimate the current high at 1.757 is the top of this whole structure. If prices move beyond this level, we would have to relook at the whole wave structure again.
Typically leading diagonals has the longest wave 1 of the entire 5 wave move, which is true in this case. Several fibonanci projection levels and retracement also gels with the above chart.
Leading diagonals typically deeply retraces wave 1, 61.8% to 78.2% of the entire move. We are looking for a 3 wave bearish corrective structure to take place. Zig Zacks are quite common.Thus our take profit take is set between those levels.
Trade Idea :
Short at 1.751
Stop Loss, 1.758
Take Profit : 1.67 (First target)
Ghi chú
I'll zoom out the chart and relabel it properly.
We are expecting a 5-3-5 move to the downside. (Zic Zag are the most common)
Ghi chú
Depending on the first wave of the corrective move, we could determine if its going to be a ZZ or a flat. ZZ= 5-3-5, Flat=3-3-5 Also reason I labelled 1/A and 2/B, is because this could be part of a complex correction stretching back a couple of months. We will need to reassess the wave pattern as it plays out.
Ghi chú
It is really stretching to the maximum point of the allowed length. If it crosses 1.7585, it will invalidate the rule that wave 3 cannot be the shortest wave.Ghi chú
If this is not the correct wave count, then the whole structure of the leading diagonal collapse. On hindsight, I should have waited for the 5 of 5 wave to complete before entering a short.
Ghi chú
Just wow.. Market took my SL and went reverse all the way down.. I'll be looking for a entry to short. Stop loss will be set above swing high of 1.76
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Thông báo miễn trừ trách nhiệm
Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.