So as said, correction is coming.
5th wave unfolded as ending diagonal. Explosive break out of lower of the diagonal. Short position can be taken. Price above 14.5 would be nasty but still valid until 17.45.
23.5% of stop loss for a 56.8% profit 2.4 R/R ratio.
It is nice move but big percent of potential loss.
Key points to follow:
Expected movement after an ending diagonal is until its minimum that's 6.22
Expected target of a 2nd wave is 0.618 of the impulse that is 6.86
Be careful as being high bullish pressure because of the next wave is a 3rd of a 3rd, correction can be less steeper than expected.
5th wave unfolded as ending diagonal. Explosive break out of lower of the diagonal. Short position can be taken. Price above 14.5 would be nasty but still valid until 17.45.
23.5% of stop loss for a 56.8% profit 2.4 R/R ratio.
It is nice move but big percent of potential loss.
Key points to follow:
- break the lower trend of the diagonal
- break the lower trend line of the channel's impulse
- break de 5th of 5th minimum at 9.42
Expected movement after an ending diagonal is until its minimum that's 6.22
Expected target of a 2nd wave is 0.618 of the impulse that is 6.86
Be careful as being high bullish pressure because of the next wave is a 3rd of a 3rd, correction can be less steeper than expected.
Trade closed manually:
Closed trade. Action wasnt as expected. 3rd wave of 5th ending diagonal was still in progress. Un folded 4th triggered the trade but the price didn't act as expected. So I close the trade and see what's coming. I expected a las 5th of 5th wave not beyond 18.4 aprox.
See related Ideas
See related Ideas
Comment:
The 5th wave isn't an ending diagonal, so the unexpected behavior made me to be prudent and get out of the trade. But the higher grade count is not completely wrong and de correction has come.
