Sharing my observations - I am working this analysis in two setups: Wave AB14 and Wave 1234. I consider Wave 1234 a subset of impulse 1-4 within Wave AB14. I noticed that B-1 retraced to Fibo level 61.8 of impulse A-B. Likewise, 2-3 retraced to same Fibo level in impulse 1-2. This makes me think that we could see some fractal behavior in Wave 1234 showing us a retracement 4(...5) that will reach the confluence point formed around 12.245 by Fibo’s 3-4 and 1-4, where I’d put the TP. Interestingly enough, that confluence point forms in Fibo level 61.8 of impulse 3-4. On top of all of this, I see divergence formed in points (2)-(4) with MACD and RSI (internal divergence - which tells me that this is a pull back, not necessarily a change on the macro trend). I think we could see the pull back happening soon given that the current price already went above Fibo Expansion 61.8 of Wave AB1. Regarding SL, I'd aim to Fibo expansion 78.6 of Wave 123, giving me a trade with a risk/reward ratio of 1.55. Happy pip hunting!
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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.