1INCH/PERP
Daily:
What I am seeing on 1INCH/PERP is that we might have bottomed wave 2 on a 5 impulse EW and are getting ready to impulse for wave 3.
The daily bottomed out back in July, creating an inverse head and shoulders pattern, which wave 1 broke through, and wave 2 has come down to retest. If you look left this has also been an EQ level.
It also coincided with the change in 10 and 20 EMAs, retesting the 80 EMA using it as support now and creating new market structure and wave 2 looks like it might be closing above the 20EMA today.
Wave 1 reached the green box level which is another important level so it makes sense it rejected there.
The fib retracement from wave 1-2 is 38.2 fibs which is pretty bullish which gives more strength to wave 3 breaking the previous high of wave 1 if we impulse from here. Volume looks like it is also picking up again.
Daily chart:
4hr:
If we drop down to the 4hr, we’ve had the 5 mini waves inside wave 1, and the ABC correction down to wave 2. And now we have printed a bullish engulfing candle.
4hr chart:
1hr:
Continuing to drop down timeframes, on the 1hr we have RSI bullish divergence inside the oversold area and it looks like we are creating a mini inverse head and shoulders ready to break to the upside to start wave 3.
1hr chart:
Depending on your risk appetite and what type of trader you are there are a few different entries, you can buy spot on the daily to hold it long term until wave 5, you can long it on the 4hr, or drop down to the 1hr and play the breakout.
Depending what timeframes you’re on will depend on what targets you have, I believe we will at least retest the green box area, but then we will break and my 1st target is 4.97 for top of wave 3 then 6.2 for top of wave 5.
chart:
Stay safe!
Daily:
What I am seeing on 1INCH/PERP is that we might have bottomed wave 2 on a 5 impulse EW and are getting ready to impulse for wave 3.
The daily bottomed out back in July, creating an inverse head and shoulders pattern, which wave 1 broke through, and wave 2 has come down to retest. If you look left this has also been an EQ level.
It also coincided with the change in 10 and 20 EMAs, retesting the 80 EMA using it as support now and creating new market structure and wave 2 looks like it might be closing above the 20EMA today.
Wave 1 reached the green box level which is another important level so it makes sense it rejected there.
The fib retracement from wave 1-2 is 38.2 fibs which is pretty bullish which gives more strength to wave 3 breaking the previous high of wave 1 if we impulse from here. Volume looks like it is also picking up again.
Daily chart:
4hr:
If we drop down to the 4hr, we’ve had the 5 mini waves inside wave 1, and the ABC correction down to wave 2. And now we have printed a bullish engulfing candle.
4hr chart:
1hr:
Continuing to drop down timeframes, on the 1hr we have RSI bullish divergence inside the oversold area and it looks like we are creating a mini inverse head and shoulders ready to break to the upside to start wave 3.
1hr chart:
Depending on your risk appetite and what type of trader you are there are a few different entries, you can buy spot on the daily to hold it long term until wave 5, you can long it on the 4hr, or drop down to the 1hr and play the breakout.
Depending what timeframes you’re on will depend on what targets you have, I believe we will at least retest the green box area, but then we will break and my 1st target is 4.97 for top of wave 3 then 6.2 for top of wave 5.
chart:
Stay safe!