All market moves consist of an impulse, a correction and then another impulse. Our job as traders is to identify the first impulse and then the correction so that we can trade the second impulse.
On the H4 above we can see a clear impulse move and then a 3 wave correction which has formed. It is not guaranteed that the bottom of wave 3 has formed but I have entered a position here. It is possible that there will be a 5th wave down before the break to the upside as indicated by the 5 red waves. I am however optimistic that the break to the upside will occur after this third wave reversal.
There is also very large support on the monthly time frame and I believe that an interim move to the upside is very likely.
Happy trading!
Linton White
JP Markets
South Africa
On the H4 above we can see a clear impulse move and then a 3 wave correction which has formed. It is not guaranteed that the bottom of wave 3 has formed but I have entered a position here. It is possible that there will be a 5th wave down before the break to the upside as indicated by the 5 red waves. I am however optimistic that the break to the upside will occur after this third wave reversal.
There is also very large support on the monthly time frame and I believe that an interim move to the upside is very likely.
Happy trading!
Linton White
JP Markets
South Africa