In this chart, we are looking at a possible WXYXZ complex correction unfolding on the daily timeframe. After Wave W and a connecting Wave X, we saw a sharp drop forming Wave Y. The next bounce, which is labeled as Wave X2, appears to be a clean five-wave impulse. While it's not very common, impulsive waves can occur as connectors in complex corrections, especially when the market wants to retrace deeply before the final leg. This adds weight to the idea that the correction is not over yet.
What follows next is Wave Z, and it seems to be taking the form of a zigzag. Within this zigzag, the first leg, Wave A, looks like a textbook leading diagonal. This is something we often see at the beginning of zigzags where the market starts a move in the direction of the larger trend but in a choppy and overlapping way. After Wave A, we should expect a pullback as Wave B, and then a final drop as Wave C, which could mark the end of the entire WXYXZ structure.
This interpretation stays valid as long as price respects the invalidation level marked near the top of Wave X2. If that level is breached, the structure will need to be re-evaluated. Until then, the focus remains on monitoring how Wave B and Wave C unfold from here.
Disclaimer:
This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
What follows next is Wave Z, and it seems to be taking the form of a zigzag. Within this zigzag, the first leg, Wave A, looks like a textbook leading diagonal. This is something we often see at the beginning of zigzags where the market starts a move in the direction of the larger trend but in a choppy and overlapping way. After Wave A, we should expect a pullback as Wave B, and then a final drop as Wave C, which could mark the end of the entire WXYXZ structure.
This interpretation stays valid as long as price respects the invalidation level marked near the top of Wave X2. If that level is breached, the structure will need to be re-evaluated. Until then, the focus remains on monitoring how Wave B and Wave C unfold from here.
Disclaimer:
This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.