This is the second scenario.
This is a case where the upward wave continues while drawing a 4-hour correction trend line.
There is a 4 hour supply zone, but it breaks through it again and renews its highs, and then there is an a-b-c retracement.
As it is a daily correction process, a rebound is expected in the daily demand zone, and if this rebound is successful, it can be propagated as a daily upward wave.
Then it will rise above the monthly supply zone, drawing a daily correction trend line, followed by an upward wave.
Conversely, if the daily uptrend propagation fails, fails to go up any further, and stays below this line, it is more likely to turn into a downtrend rather than an uptrend. If so, you might be able to set a decline target down to the weekly or monthly demand zone below.
This is a case where the upward wave continues while drawing a 4-hour correction trend line.
There is a 4 hour supply zone, but it breaks through it again and renews its highs, and then there is an a-b-c retracement.
As it is a daily correction process, a rebound is expected in the daily demand zone, and if this rebound is successful, it can be propagated as a daily upward wave.
Then it will rise above the monthly supply zone, drawing a daily correction trend line, followed by an upward wave.
Conversely, if the daily uptrend propagation fails, fails to go up any further, and stays below this line, it is more likely to turn into a downtrend rather than an uptrend. If so, you might be able to set a decline target down to the weekly or monthly demand zone below.
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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.
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.