D1 chart:
- Two critical uptrend lines to watch:
~black: wave 3-4 lows
~ red: beginning of wave 1 & wave 3 lows
-->Obviously, the black one is more significant (textbook & in reality).
- One critical channel to watch:
~ the downtrend channel on the right.
- One extreme support to watch:
~ dotted line $0.30
- One local support to watch:
~ red line at $0.423
**Purpose of this analysis:
There are two variables on the chart: time on the x-axis and price on the y-axis.
When critical trendline crosses over, dramatic moves in price usually follows. (Textbook, and as we can see from historical data (thick blue vertical line).
The vertical blue lines can be used to anticipate the time when sharp price action develops. (Hint, apparently it's close).
*In case of a sharp drop:
- We need to break $0.423 first which invalidates previous wave counts. In which case, we need to recount and re-draw fib tools to find fib targets. Otherwise we look for interactions at these support lines mentioned above.
- Two critical uptrend lines to watch:
~black: wave 3-4 lows
~ red: beginning of wave 1 & wave 3 lows
-->Obviously, the black one is more significant (textbook & in reality).
- One critical channel to watch:
~ the downtrend channel on the right.
- One extreme support to watch:
~ dotted line $0.30
- One local support to watch:
~ red line at $0.423
**Purpose of this analysis:
There are two variables on the chart: time on the x-axis and price on the y-axis.
When critical trendline crosses over, dramatic moves in price usually follows. (Textbook, and as we can see from historical data (thick blue vertical line).
The vertical blue lines can be used to anticipate the time when sharp price action develops. (Hint, apparently it's close).
*In case of a sharp drop:
- We need to break $0.423 first which invalidates previous wave counts. In which case, we need to recount and re-draw fib tools to find fib targets. Otherwise we look for interactions at these support lines mentioned above.