Draft Kings appears to have just finished an expanded flat for wave 2. I love expanded flats because the movement that follows is typically very explosive to the upside. Additionally, it is a wave 3 following this expanded flat which makes this trade even more appealing to me. Wave 3's typically see the most price action of the 5 wave pattern.
I have a price target of $50.99 for wave 3. Since wave 3 will trade in 5 waves, I will look to sell around the $41.95 range and wait on the first retracement (which will likely be deep in price) to reenter long and finish the ride to the top of Wave 3. Doing so will allow me to maximize my profits by avoiding the retracement that I expect to be the largest retracement within wave 3.
Please like and leave a comment letting me know your thoughts!
I have a price target of $50.99 for wave 3. Since wave 3 will trade in 5 waves, I will look to sell around the $41.95 range and wait on the first retracement (which will likely be deep in price) to reenter long and finish the ride to the top of Wave 3. Doing so will allow me to maximize my profits by avoiding the retracement that I expect to be the largest retracement within wave 3.
Please like and leave a comment letting me know your thoughts!