Ratios confirm 'the right look' for triangle.
Apart from the anomalous spike last night, wave C of the [suspected] triangle nailed the 0.618 of wave A to the tick. This is extremely common in triangles, thus adding weight to the expectation for more sideways price action. If the rest of the triangle unfolds as normal I would expect a bounce of about 9.40 (D), followed by a rally to about 10.45 (wave E at 0.618 of wave C), followed by an impulsive 5 wave move to the downside.
From a trading perspective, this means to exercise caution for the next couple of swings as they are still just corrective and not impulsive. ESPECIALLY, do not fall for the trap of interpreting wave E as the beginning of a rally if/when it breaks the upper bound of the triangle. Throwovers are very common and almost expected of an E wave.
See related links for longer term targets.
From a trading perspective, this means to exercise caution for the next couple of swings as they are still just corrective and not impulsive. ESPECIALLY, do not fall for the trap of interpreting wave E as the beginning of a rally if/when it breaks the upper bound of the triangle. Throwovers are very common and almost expected of an E wave.
See related links for longer term targets.
Related publications
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.