Corto

Short-term Sell Setup

Por wsbza

Actualizado

Sell after corrective pull back, simply to catch wave 3 or c decline

Nota

could be a double zigzag correction

Nota

could not rule out a larger flat correction

Nota

there is a bearish count right now, but we need to see a relatively strong decline to prove wave 3 is under way

Nota

could be more complex than I thought

Nota

If this is an ending diagonal, we should see price re-test sub wave (3) high (usually higher than wave (3) but should not breach the origin of blue wave 1 or a) then a sharp decline fall below the end of sub wave (4).

Since the reversal after ending diagonal usually very quick and sharp, it could be difficult to enter the trade manually, we could probably place a stop sell order just 1 point below the end of wave (4) (only if we see the wave (5) rally first).

Nota

The short-term bearish target would be re-test the end of blue wave 1 or a at 7391

Nota

The starting point of the blue wave 1 has been broken, we need to figure out something else

Nota

maybe this is how it ends

Nota

A close below 7391 (end of blue wave {iv}) would indicate diagonal is complete.

Nota

7604 should act as the short-term key resistance, break above this level would eliminate the immediate bearish potential. In other words, if the diagonal count is correct, we will be likely to see an impulsive decline to follow. To keep the impulsive assumption alive, wave 4 should not overlap with wave 1.

Nota

could be another leg down to complete the initial 5 waves sequence

Nota

The alter count may turn out to be a Flat

Nota

double zigzag w-x-y where wave x could be zigzag or triangle

Nota

Flat is less likely to happen

Nota

more bearish count in blue
an expanding leading diagonal to start the blue wave {iii}?

Nota

Short-term count could be:
Blue {i}-{ii} followed by pink (i)-(ii);
Grey {i}-{ii};
Grey {i}-(a)/{ii}

Nota

another solid close below yesterday's low of 6534 would suggest wave iii of (iii) is likely under way

Nota

double zigzag w-x-y re-test the end of blue wave iv ? or 0.618 fib level?

Nota

medium term bearish count

Nota

other than the very bearish 1-2-{i}-{ii}-(i)-(ii) count, it is also possible to have a 1-2 followed by diagonal {i} then we could have a recovery {ii} to construct a right shoulder of a very large head&shoulder pattern

Nota

short0term bearish count

wsbza

'When you have eliminated the impossible, whatever remains, however improbable must be the truth.'

Email：info@ewc.space

También en:

Exención de responsabilidad

La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.