ABC correction let make some cash

It would appear that ETH has bounced of the low at 450 as expected (went past my target at 461). I am expecting an ABC pattern to form here before we see price push down toward 350 but great thing about this trade it doesn't matter bearish or bullish this should be a profitable trade.

Simple EW theory wave 2 and B waves normally retrace between .5 & .618 of wave 1 or an A wave. It could only make the .382 at 507 (+6.8%) but only if ETH is getting ready for a big run which I'm not expecting.

Trade setup: Short entry @ 544 - 551 (1.618-1.75 EXT and .5 retrace of previous bearish move) expected overnight into tomorrow morning.
Profit targets - 507,496,485

Will update as this trade plays out.

Thanks for taking a look, any feedback is always welcome. These are my ideas for my trade setups and should not be considered advice for your trade strategies. Prosperous trading everyone.

Comment:

Okay so obviously at this point my setup didn't work out. I have two counts on this neither one I like to much but we'll see how price action reacts to the EMA.

First count

This count I don't like since the pitchfork doesn't line up very well with the fib ext. It doesn't fit my overall view of where the market is going and gives a bounce for the WXYXZ at 400. It's possible but not likely.

Second count

This count seem more likely for two reasons. First it seems to fit the pitchfork better and second if ETH is in a 3rd wave dump it is being very calm about it, I would expect a more impulsive move. The thing that bothers me about this count is the time frame, ETH is running out of time to be able to complete an ABC pattern and still stay inside the downtrend channel it is in. That would imply a more bullish pattern.

If we see rejection at 494 and violate the low at 481 I would expect a dump toward the 400 level but if the local low at 481 holds I would expect a push toward 544. For me there is no safe trade at this point and i will wait for conformation of direction and trade from there.

Comment:

Looking like a short entry incoming between 527-530