Risk: Low (clear fib confluence, EW count, and Dollar Cost Average strategy)
Allocation: Standard Swing-Trade Allocation (portioned for DCA)
====================
The Rational Play:
DCA at fib confluence levels indicated
If we turn around at the green .382, SL below .5
If we retrace deeper, set SL's below green .618 level
Limit Sells at blue fib levels indicated
====================
Explanation:
This is an extremely proportional EWave pattern, and as such it has thrown many confluent and symmetrical fibs and fib extensions.
We are looking to catch the bottom of wave 4 down of a 5 wave impulse from 5750, and then ride wave 5 up.
Blue fib: resist fib from top to bottom of previous large move down (9990-5750)
Orange fib: support fib for measuring the retracement of wave 2 into wave 1.
Pink fib extension: resist fib for measuring the proportionality of the 5 wave structure based on the wave 1 height.
Green fib: support fib for measuring the retracement of wave 4 into wave 3.
Because wave 2 retraced below the .618 of wave 1, we can expect a likely shallow retracement for this wave 4 down.
Therefore we will DCA into aggressive positions at the blue .382 with a higher .5 stop loss,
and ready ourselves to buy in lower in the unlikely event of a heavy retrace.
If wave 4 retraces below the top of wave 1 by more than a wick, this count is invalidated.
However, there is a square up and .618 level at that PSR @6800, so that is very unlikely.
====================
This is a swing trade. Allocate accordingly (for help, see Triage Part II: The Portfolio www.hypedoncrypto.co...he-losing-trader-ii/ )
Allocation: Standard Swing-Trade Allocation (portioned for DCA)
====================
The Rational Play:
DCA at fib confluence levels indicated
If we turn around at the green .382, SL below .5
If we retrace deeper, set SL's below green .618 level
Limit Sells at blue fib levels indicated
====================
Explanation:
This is an extremely proportional EWave pattern, and as such it has thrown many confluent and symmetrical fibs and fib extensions.
We are looking to catch the bottom of wave 4 down of a 5 wave impulse from 5750, and then ride wave 5 up.
Blue fib: resist fib from top to bottom of previous large move down (9990-5750)
Orange fib: support fib for measuring the retracement of wave 2 into wave 1.
Pink fib extension: resist fib for measuring the proportionality of the 5 wave structure based on the wave 1 height.
Green fib: support fib for measuring the retracement of wave 4 into wave 3.
Because wave 2 retraced below the .618 of wave 1, we can expect a likely shallow retracement for this wave 4 down.
Therefore we will DCA into aggressive positions at the blue .382 with a higher .5 stop loss,
and ready ourselves to buy in lower in the unlikely event of a heavy retrace.
If wave 4 retraces below the top of wave 1 by more than a wick, this count is invalidated.
However, there is a square up and .618 level at that PSR @6800, so that is very unlikely.
====================
This is a swing trade. Allocate accordingly (for help, see Triage Part II: The Portfolio www.hypedoncrypto.co...he-losing-trader-ii/ )