There are 2 ways to look at the wedge that has formed:
A truncated 5th wave that ends in an Ending Diagonal, or
A W-X-Y-X-Z triple combination retracement.
Side note: To be honest, had the wedge not form in 5 waves in the sub counts, I would really prefer for option 2 to be a “triangle”.
The nice thing about this is that no matter whether it is the 1st or 2nd way, both gave the same direction: down.
There is an advantage to the 1st count though: A sharp move down upon breakdown. The 1st way also has the added advantage of being in-sync with S&P500 and DJIA.
There is actually a 3rd way to look at the wedge, one that I think is highly unlikely: 1-2,1-2,1-2. This way of counting means you will expect the next move up to be a very powerful wave 3. While I think that this is highly unlikely, we have be prepared for freak scenario and thus the stop loss.
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.