And now the 60-min chart... MUCH more bullish. MACD and RSI divergence And I'd love for Apex to chime in on this one, but would this be considered a 5-wave downmove with a smaller time-frame climactic 5-wave move at the very bottom (The double climactic wedge you've shown a few times?)
Looks beautiful.. dont forget the bullish hammer at the low as well as the double bottom that was put in place. This pattern overlapping the higher level 78.6 retracement leads to a high probability of continued upside. At a minimum up to 1475-1480. You can see the trendline lined up as well... a break of that will get more traders involved. Nice anaylsis moose.
preliminarily, i am assuming you all mean a 78.6% retracement from high to swing low. is this correct?
Apex is the godfather of this TA, but that was always my understanding. sqrt(.618) = .786 ... whether the level is a self-fulfilling prophecy or what I have no clue. ...and thanks for the compliment apex, im grinning
ya take fib tool and measure from low to high swing and vice versa for a short. If you have confluence in these areas can set up for some really nice R:R trades. I have a lot of reasons why I think it works so well.. but I have no proof. I believe its where big funds and insti's think the market is cheap in an uptrend or expensive in a downtrend. Another reason... its just plain pscyhology.. people who are long from the bottom get scared when the market is approaching their entry after moving very far in the their original direction and close out because they dont want a winner turn into a loser.. smart trader takes the other side and the novice watch it reverse only to move to new highs after closing them out.....
hmmm... I have always looked at 76.4% in that area 1 - (.618 * .382), or 1 - 23.6%. Not going to be a big difference between 78.6% and 76.4%