That was interesting day – so much action. It dropped to 50% level with clearly 3 wave structure where B retraced 50% also meaning it retraced miniumm requirement for B. As next third component of C plunged to entire impulse 50% retracement level where new contracting triangle started to develop and rest of the day we blow up back to 61.8% area, another safe haven touche.
Very beautifull charts indeed and follow the guidelines of EW, very tradable also but as one can see to make prognose as break-out from these levels is not easy think to try to forecast how it is going to happen.
You have one full 12345 impulse finished + most simple ABC correction for it, then as next new impulse which saw allready its W3 swing.
Nothing on there I could call as high propability trading available there now, all done again. That 61.8% resistance where price is now is knocking doors again for one larger degree B wave with this 50 – 86,2% area ie. price is there allready. Only succesfull breake of recent high can proceed impulse further as one scenario.
I still believe that this SP is on the way or another to hit 1180 but what happens before that happens we will see because one of my scenario is that this market is going to stay in this range of 1040-1180 for multimonths meaning we do not go anywhere anymore instead trading very complex and very large degree XX which internal behaviour is not far away from IV wave.
I actually missed that cont. triangle on there but good outdoor life won again instead to stay in the market and indoors. Besides that cont. triangle is everywhere and anywhere in these days.
It is allmost only pattern I trade anymore because profit factor it is offering is so much greater than any other since it opens W2.
As next this 61.8% might retrace again down, but again, next smaller will face same scenario immediately after it ie. it is considering to place again one W2 for it OR entire char is going to retrace deeper as seen at so far. Second scenario means of cource that todays plunge was only A wave of ABC series where B and C not even seen yet.
