Elliott Impulse Wave with a Fib Retrenchment between Wave 2 & 3.
This evening I started off by asking the community for help so that I can start to better understand how the Elliott Impulse Wave works in a downward trend.
The first chart I got completely wrong (as shown below) but thanks to the help of @supestv I managed to correct the starting point of the Elliott Impulse Wave.
@xSnorlax then commented on my last chart
He said "My personal take is that wave 4 might not be done yet. I like your red box, it will form a nice 0.5 fib retracement (based on the price of wave 2 and 3). at around$ 7730-ish.
It also coincides with the rising wedge and downtrend resistance."
So I included a Fib Retracement from the top of Wave 2 down to Wave 3 and you can see where the resistance zone that I had drawn previously lines up perfectly on the 0.5 Fib line at $7733.10, which then ties up nicely with Wave 5 retracing back nicely to the 0.236 Fib line at $7070
The first chart I got completely wrong (as shown below) but thanks to the help of @supestv I managed to correct the starting point of the Elliott Impulse Wave.
@xSnorlax then commented on my last chart
He said "My personal take is that wave 4 might not be done yet. I like your red box, it will form a nice 0.5 fib retracement (based on the price of wave 2 and 3). at around$ 7730-ish.
It also coincides with the rising wedge and downtrend resistance."
So I included a Fib Retracement from the top of Wave 2 down to Wave 3 and you can see where the resistance zone that I had drawn previously lines up perfectly on the 0.5 Fib line at $7733.10, which then ties up nicely with Wave 5 retracing back nicely to the 0.236 Fib line at $7070
