A chart I intend to use to keep an eye on obstacles for the rebound. Thick Red line should present significant resistance. Minor lines represent divisions of the deceleration channel and will also provide resistance.
I've used channel confluence to forecast market structure based upon the assumption of nested Elliott Wave zig-zag patterns in progress. We're currently in the eye of the storm so expect extremely choppy movement over the next day or so. The intention of this is not to forecast the precise movement of price but rather to understand market structure at a higher degree.
This pair has the best structure for EW and KC analysis. Base channel shown in Blue and Acceleration channel shown in Green (with adjacent shadow channels).
Green and Red lines illustrate energy barriers (dynamic support and resistance offered by the growth structure) offering support from above (Green) and resistance from below (Red).
An architectural overview of the bearish motive wave in play. Current wave in progress is the 'C' of the fourth with a target of $4670 followed by a final move down to $2400 for completion of the higher degree structure.
This rally looks to be unstoppable. The extended fifth has developed a further nested wave one, which is currently retracing. The last peak resulted in a further top-side break of the acceleration channel and there has been no motive-wave re-test of the under-side of the acceleration channel yet. This pair is currently making a parabolic advance. Very long indeed!
My current high probability bounce zone is somewhere in the box. I'm using box-entry as an eyes-on trigger. I don't intend to open a long position until I see a wave 1 candidate materialise in that zone (see bottom left for the previous)..
Justification for box bounds:
(i) Intersection of base and deceleration channels
(ii) wave A-B length parity confluence