QLINK 30% POTENTIAL GAIN
Updated
A little delay in posting:
Looking at the entire chart the obvious pattern is a symmetrical triangle being in play. The bottom of this triangle was tested for the 3rd time on 5/10. This is an important pattern to take into account if debating placing a buy order at this time because it shows minimal risk is at play. Currently price is 1923 and the bottom of the triangle is at 1820 which is approximately 5% risk. To protect against this pattern breaking down, a stop loss would be considered at around 1790. As will be explained below, a new elliot wave sequence started at around 1800 and a complete retracement of wave 1 would invalidate the sequence as well as break the triangle pattern . If that happens, then get out.
The first low and high were rather quick as QLC 0.26% found its range on Binance. Thereafter, we saw a long rounded bottom pattern (or cup n handle) which is drawn out in yellow. The rounded bottom pattern almost reached its full potential for a breakout before being halted by the resistance of the triangle pattern .
The uptrend and breakout of the rounded bottom look to fit the proper measurements of a elliot wave sequence. The first wave had a decent run followed by a 62% retracement which is normal. The third wave failed to eclipse wave 1 by 162% which effects wave 5, wave 3 also had a substantial retracement of 77%. Because Wave 3 did not eclipse wave 1 by 162%, the likely outcomes for wave 5 were 62%, 100% or 162% of the combination of waves 1 and 3. Considering the substantial retracement of wave 3, it makes sense that wave 5 was stunted and only reached 62% of the combination of waves 1 and 3. This lined up perfectly with the resistance of the triangle pattern .
The downtrend following completion of the elliot wave sequence was marked by a head and shoulders reversal comprising uptrend waves 3, 4, 5 and downtrend waves A, B and mid-wave C was the breakout sending it back to the support of the triangle pattern for completion of the downtrend wave sequence on 5/11 at 1820. This is where things get interesting because a similar inverse head and shoulders reversal pattern is the process of completing the right shoulder comprising downtrend waves C, D, E and new uptrend waves 1, 2, and mid-3 is the proposed breakout point at approximately 2175. If this breakout occurs, the potential measures a fit perfect to the resistance of the triangle pattern .
This new uptrend wave sequence recently completed wave 1 followed by a healthy correction of 77% which is normal. If wave 3 triggers the inverse head and shoulders breakout as anticipated at 2175 then it could run straight to the resistance at the top of the triangle pattern where I anticipate it will lose steam and retrace some before wave 5. It just so happens that the top of the triangle pattern is around 162% of wave 1 which is a standard length for a healthy wave 3. If wave 3 is retraced 77% again (like the previous sequence) then wave 5 being measured as 100% of wave 1 would fit perfectly to the resistance of the triangle pattern at which point it would likely reverse again and head back down. However, if a normal healthy wave 3 retracement of only 23% or 38% occurs, then wave 5 could force its way through the resistance of the triangle with a potential for an additional 40% breakout.
MY Plan -
Just bought in at 1923 before writing this explanation. Stop loss for now as indicated at 1790, around 6-7% risk. Will scale.
Target 1 is 2300 - based on wave 3 reaching 100% of wave 1 - sell up to 33% of my order.
Target 2 is 2500 - based on wave 3 reaching 162% of wave 1 and hitting the top of the triangle - sell up to 33% of my order.
If wave 3 stops short or 2500 - flash sell up to 33% of my order during retracement.
Target 3 is 2500 (again) which is based on wave 5 reaching the top of the triangle - sell 50% of what I have left at the time.
Whatever I have left after 2500 is holding out hopes for triangle breakout and unlikely target 4 - 3500.
Looking at the entire chart the obvious pattern is a symmetrical triangle being in play. The bottom of this triangle was tested for the 3rd time on 5/10. This is an important pattern to take into account if debating placing a buy order at this time because it shows minimal risk is at play. Currently price is 1923 and the bottom of the triangle is at 1820 which is approximately 5% risk. To protect against this pattern breaking down, a stop loss would be considered at around 1790. As will be explained below, a new elliot wave sequence started at around 1800 and a complete retracement of wave 1 would invalidate the sequence as well as break the triangle pattern . If that happens, then get out.
The first low and high were rather quick as QLC 0.26% found its range on Binance. Thereafter, we saw a long rounded bottom pattern (or cup n handle) which is drawn out in yellow. The rounded bottom pattern almost reached its full potential for a breakout before being halted by the resistance of the triangle pattern .
The uptrend and breakout of the rounded bottom look to fit the proper measurements of a elliot wave sequence. The first wave had a decent run followed by a 62% retracement which is normal. The third wave failed to eclipse wave 1 by 162% which effects wave 5, wave 3 also had a substantial retracement of 77%. Because Wave 3 did not eclipse wave 1 by 162%, the likely outcomes for wave 5 were 62%, 100% or 162% of the combination of waves 1 and 3. Considering the substantial retracement of wave 3, it makes sense that wave 5 was stunted and only reached 62% of the combination of waves 1 and 3. This lined up perfectly with the resistance of the triangle pattern .
The downtrend following completion of the elliot wave sequence was marked by a head and shoulders reversal comprising uptrend waves 3, 4, 5 and downtrend waves A, B and mid-wave C was the breakout sending it back to the support of the triangle pattern for completion of the downtrend wave sequence on 5/11 at 1820. This is where things get interesting because a similar inverse head and shoulders reversal pattern is the process of completing the right shoulder comprising downtrend waves C, D, E and new uptrend waves 1, 2, and mid-3 is the proposed breakout point at approximately 2175. If this breakout occurs, the potential measures a fit perfect to the resistance of the triangle pattern .
This new uptrend wave sequence recently completed wave 1 followed by a healthy correction of 77% which is normal. If wave 3 triggers the inverse head and shoulders breakout as anticipated at 2175 then it could run straight to the resistance at the top of the triangle pattern where I anticipate it will lose steam and retrace some before wave 5. It just so happens that the top of the triangle pattern is around 162% of wave 1 which is a standard length for a healthy wave 3. If wave 3 is retraced 77% again (like the previous sequence) then wave 5 being measured as 100% of wave 1 would fit perfectly to the resistance of the triangle pattern at which point it would likely reverse again and head back down. However, if a normal healthy wave 3 retracement of only 23% or 38% occurs, then wave 5 could force its way through the resistance of the triangle with a potential for an additional 40% breakout.
MY Plan -
Just bought in at 1923 before writing this explanation. Stop loss for now as indicated at 1790, around 6-7% risk. Will scale.
Target 1 is 2300 - based on wave 3 reaching 100% of wave 1 - sell up to 33% of my order.
Target 2 is 2500 - based on wave 3 reaching 162% of wave 1 and hitting the top of the triangle - sell up to 33% of my order.
If wave 3 stops short or 2500 - flash sell up to 33% of my order during retracement.
Target 3 is 2500 (again) which is based on wave 5 reaching the top of the triangle - sell 50% of what I have left at the time.
Whatever I have left after 2500 is holding out hopes for triangle breakout and unlikely target 4 - 3500.
Note
MACD Turning on the 4 hour - Good SignRSI Found Support on Previous Resistance - Good Sign
Looking for a quick little pump in the next 2 4 hour candles to get us closer to the inverse head and shoulders neckline.
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