rising price has made diagonal chart pattern,
resisting upper trend line while supporting lower trend line.
visual you can sell at upper trend line while buy at lower trend line.
how will you know the exact top ?
this chart pattern follows abde corrective wave pattern , wave e is the last wave which ends at upper trend line.
we will use fib ratio to get numeric value of top. wave abde relate to each other by fib ratio
using fib retracement tool
a + a0.618 = c
c + c0.382 = e
b + b0.786 = c
d + d = e
using fib extension tool
a =e
a1.382 =c
(a+c)0.618 =e
with the help of fib ratio and trend line you can get exact top of the chart pattern,
using Elliott wave theory you can sell high right at the top
resisting upper trend line while supporting lower trend line.
visual you can sell at upper trend line while buy at lower trend line.
how will you know the exact top ?
this chart pattern follows abde corrective wave pattern , wave e is the last wave which ends at upper trend line.
we will use fib ratio to get numeric value of top. wave abde relate to each other by fib ratio
using fib retracement tool
a + a0.618 = c
c + c0.382 = e
b + b0.786 = c
d + d = e
using fib extension tool
a =e
a1.382 =c
(a+c)0.618 =e
with the help of fib ratio and trend line you can get exact top of the chart pattern,
using Elliott wave theory you can sell high right at the top