So on my previous EW analysis you will see that my target was $9000. Now that that target has been reached what is the next move?
So the rule on corrective waves are that wave C, will often correct to the territory of wave 4 to the lesser degree(4 hour chart). My 9k target was the completion of wave C on a 1 day chart. The pink analysis is on the 4 hour chart which is the next lesser degree. So 9k is the area of wave 4 to the lesser degree.
Our next target is $8400, then $9500. That will be wave 1 on the 1 day chart showing a bullish confirmation.
There is a chance however, that wave C may be extended to $9500, as the measurement of wave C in the corrective cycle should be of similar measurement to wave A.
Wave A $6500-$8400 = $1900
Wave B $8400-$7800 = $600
Wave C $7800 + (Wave c measurement ) $1900 = $9700(probability is 9500)
Lets watch closely...
So the rule on corrective waves are that wave C, will often correct to the territory of wave 4 to the lesser degree(4 hour chart). My 9k target was the completion of wave C on a 1 day chart. The pink analysis is on the 4 hour chart which is the next lesser degree. So 9k is the area of wave 4 to the lesser degree.
Our next target is $8400, then $9500. That will be wave 1 on the 1 day chart showing a bullish confirmation.
There is a chance however, that wave C may be extended to $9500, as the measurement of wave C in the corrective cycle should be of similar measurement to wave A.
Wave A $6500-$8400 = $1900
Wave B $8400-$7800 = $600
Wave C $7800 + (Wave c measurement ) $1900 = $9700(probability is 9500)
Lets watch closely...