I don't usually post trade setups that include eliott waves, however this one is really captivating.
MOMO completed a 5 wave Impulse from its low before recently completing an ABC correction where the second wave completed at a perfect bearish bat, and then the wave hit its measured move below the key support level. The correction waves bottomed out at a key level from history that coincides with the 0.618 fib retracement level from the low to high of the Impulse phase. This potentially signals a wave 2 completion of a larger 5 Wave Impulse up
One of the strongest setups we look for is a spring backtest, where an asset falls below a key level, before springing back above that key level and backtesting it as support. In this case we are yet to backtest it as support. However, we have sprung and are showing lots of bullish divergence, so within the community we have started to layer in from this level.
First target at a key resistance already gives us a 38% return against a potential 8% loss.
MOMO completed a 5 wave Impulse from its low before recently completing an ABC correction where the second wave completed at a perfect bearish bat, and then the wave hit its measured move below the key support level. The correction waves bottomed out at a key level from history that coincides with the 0.618 fib retracement level from the low to high of the Impulse phase. This potentially signals a wave 2 completion of a larger 5 Wave Impulse up
One of the strongest setups we look for is a spring backtest, where an asset falls below a key level, before springing back above that key level and backtesting it as support. In this case we are yet to backtest it as support. However, we have sprung and are showing lots of bullish divergence, so within the community we have started to layer in from this level.
First target at a key resistance already gives us a 38% return against a potential 8% loss.
Note
Perfect backtest today, we entered and lowered the average considerably. We look for the price to continue up next week and most definitely stay above the level.Note
Good backtest, keep a close eye over the next few daysNote
Need to break back above early next week or we are out.
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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.