If you take notice that we broke the flag you will also notice that the candles were NOT as impulsive as level 4-5 from our previous 12345 IMPULSE from A to B on this idea. If the breakout was as strong in volume and size as that the probability of a straight parabolic continuation is higher.
BUT we didnt get that. We have went into a consolidation that can breakout either way because of its price location on the daily frame and how it is forming on the 4hr frame.
This 3rd wave is slower...tight in a channel and has its own little 12345 move inside it. Usually this can* be followed by an ABC correction or turn into 3 driving forces UPWARD to try to make it to 78 - 88% from the top most recent high or most recent high on a timeframe that is +1 higher. SO this would be those 2 marked orange box zones. Think of it like bus stations or a train station going back and forth between station 1 2 3 4 5 and 6. As stated on the idea, waves can continue on forever inside a channel however long it wants to wave. If you look at USDCAD on the daily chart this happened for 2 years or longer.
Now we have already had a 1,2,3 from our first reversal. I marked this with bright pink for everyone. This made our first high and second lower high to the lower low. Leg E would either continue or become consolidation for a reversal continuation of the trend. That would give us an INV head n shoulder pattern. Similar to how NZDUSD idea chart looks that I posted for someone as well.
Always remember traders that these are IDEAS for your best probably entries that I can see. If the price zone does not get there. The trade does not happen. If you are wishing to learn how to trade multiple levels then it can become more complex since structure can always change consistently giving us more than one probability to work off of.
BUT we didnt get that. We have went into a consolidation that can breakout either way because of its price location on the daily frame and how it is forming on the 4hr frame.
This 3rd wave is slower...tight in a channel and has its own little 12345 move inside it. Usually this can* be followed by an ABC correction or turn into 3 driving forces UPWARD to try to make it to 78 - 88% from the top most recent high or most recent high on a timeframe that is +1 higher. SO this would be those 2 marked orange box zones. Think of it like bus stations or a train station going back and forth between station 1 2 3 4 5 and 6. As stated on the idea, waves can continue on forever inside a channel however long it wants to wave. If you look at USDCAD on the daily chart this happened for 2 years or longer.
Now we have already had a 1,2,3 from our first reversal. I marked this with bright pink for everyone. This made our first high and second lower high to the lower low. Leg E would either continue or become consolidation for a reversal continuation of the trend. That would give us an INV head n shoulder pattern. Similar to how NZDUSD idea chart looks that I posted for someone as well.
Always remember traders that these are IDEAS for your best probably entries that I can see. If the price zone does not get there. The trade does not happen. If you are wishing to learn how to trade multiple levels then it can become more complex since structure can always change consistently giving us more than one probability to work off of.
Comment:
damnit forgot to put orange boxes. They would be at zone HIGHER and zone HIGHER LOW
