This is almost too perfect of an example. A classic five wave impulse with an extended fifth, meaning the W5 is longer than W1 or W3. Each of the impulse waves (1, 3, 5) consisted of five subwaves. In addition to this, an ABCDE triangle consolidation tends to happen on W4 of a 5 wave impulse, which in this case it did.
To mark the end of this magnificent rally, the 1H RSI printed regular bearish divergence for subwaves W3 & W5 of the extended fifth wave.
I believe we are due for a correction. An ABC Correction tends to follow a five wave impulse. A common retracement zone is the S/R area of W4, which is where massive consolidation occurs in an ABCDE triangle. This S/R zone is around 9600. In conjunction with this, the VPVR indicator shows high liquidity at 9590.
A support zone closer to entry resides at the S/R area for the W4 subwave of the extended fifth wave around 9950.
Short Position
Entry: 10312
Stop Loss: 10400
Target 1: 9950
Target 2: 9590
To mark the end of this magnificent rally, the 1H RSI printed regular bearish divergence for subwaves W3 & W5 of the extended fifth wave.
I believe we are due for a correction. An ABC Correction tends to follow a five wave impulse. A common retracement zone is the S/R area of W4, which is where massive consolidation occurs in an ABCDE triangle. This S/R zone is around 9600. In conjunction with this, the VPVR indicator shows high liquidity at 9590.
A support zone closer to entry resides at the S/R area for the W4 subwave of the extended fifth wave around 9950.
Short Position
Entry: 10312
Stop Loss: 10400
Target 1: 9950
Target 2: 9590