Dear all,
See my previous post "Last leg of a larger retracement": The EDT was expected to unfold and the full retracement to stop at Wave 2 level. This occured. From there we see an impulse which is shown here on the 5 min !! chart. I would like to give you more insight how I interpret the chart based on wave analysis.
Current Situation:
We see an impulsive in wave (i) and a correction in w. Then the price moves higher in wave x. Now, wave x is very important. Many people think that this is a new impulsive wave and go long. From my view this is wrong. A retracement always ends with an impulsive wave (maybe I will show this in a video taping. Difficult to explain in written format). And the previous leg of x was not impulsive. Going Long now bears the risk to be knocked out.
Therefore be patient and wait for the last impulsive decline (i.e. confirmation). Btw, technical analysts will call this later "the price has tested the trendline".
So I expect this decline to happen down to the marked rectangle. If the wave y stops there, this might be a good entry point for a long trade.
Nice Weekend
Merakshi
See my previous post "Last leg of a larger retracement": The EDT was expected to unfold and the full retracement to stop at Wave 2 level. This occured. From there we see an impulse which is shown here on the 5 min !! chart. I would like to give you more insight how I interpret the chart based on wave analysis.
Current Situation:
We see an impulsive in wave (i) and a correction in w. Then the price moves higher in wave x. Now, wave x is very important. Many people think that this is a new impulsive wave and go long. From my view this is wrong. A retracement always ends with an impulsive wave (maybe I will show this in a video taping. Difficult to explain in written format). And the previous leg of x was not impulsive. Going Long now bears the risk to be knocked out.
Therefore be patient and wait for the last impulsive decline (i.e. confirmation). Btw, technical analysts will call this later "the price has tested the trendline".
So I expect this decline to happen down to the marked rectangle. If the wave y stops there, this might be a good entry point for a long trade.
Nice Weekend
Merakshi
Comment:
Sorry I referred to the wrong big Picture. This is the correct reference.
