Trend should turn now

We are glad to receive some warm feedback. It is a good feeling to have communication in both sides.

The market has also spoken and we are listening carefully to what he wants to tell us. As we said in the last post: “If, however, we do rise a bit up from the current level and then go down to slightly below 0.02350, make sure not to turn bearish. If even the temptation is strong.”. We hope after this last drop to 0.02340 none of our readers turned too much bearish. Because the decline down looks complete. There could however be one more minor drop to 0.02320. That will definately scare away some more bulls and will lead some more bears into the trap.

But let us take a look on a bigger picture again:

FinishedStructure-1

The Flat structure we discussed yesterday looks complete now. We have clear 3 waves down: “W”, then corrective pattern up: “X” which took us almost back to the origination of the “W” and then very nice 5 waves down, where the wave 3 has the most classic Fibonacci ratio of the wave 1 ->1.618. For the wave 5 the perfect bottom would come at 0.02320, because then it would be 100 % of the wave 1, but one can’t demand from the market to be all the time perfect. Besides, we see a clear divergence between the price decline (we made the new low) and the RSI, which didn’t make it. It’s also additional signature of the wave 5.

We are looking now for a 5 wave advance from around the current level. There are also some othe metrics we are watching at the moment to confirm the trend reversal. But we will discuss them in the next post. Because the structure (pattern) is the most important part in the Elliott Waves analysis.

As before, our call for an advance is valid as long as the price stays above 0.02040. If that level is broken, we will have to reconsider the current count.

Take care and as always, plan your trade, trade you plan.

The next update will be published on Saturday.

The Elliott Wave Principle describes the behaviour of the financial markets. This Principle is build on the mass psychology swings from pessimism to optimism and back in a natural sequence. When these swings happen, the specific Elliott wave patterns in price movements are created and become visible. Each pattern has implications regarding the position of the market within its overall progression, past, present and future.
The purpose of our blog posts is to outline the progress of markets in terms of the Elliott Wave Principle.
While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will my posts make specific recommendations for any specific person, and at no time may a reader or viewer be justified in inferring that any such advice is intended.
Very important. Investing carries risk of losses. You should be aware of all the risks associated with investing/trading financial instruments. Information provided in this blog is expressed in good faith, but it is not guaranteed.
The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities.
This blog and the information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions.
In no event will we be liable for any loss or damage on your account in connection with the use of our publications.
Advertisements

Author: Ravno_108

Sentiment wave rider. Product creator. Yogi

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s