W0-W1: 1614-2079 (+465 points)
W1-W2: 2079-1810 (-269 points)
W2-W3: 1810-2790 (+980 points)
Let's create scenarios following the rules:
Scenario 1: Simple W4 Calculation
Since W2 is complex, W4 will likely be simple (alternation principle)
W3 movement = 980 points
Maximum allowed for W4 = 50% of W3 = 490 points
Therefore first target range: 2790 - 490 = 2300 level
Scenario 2: Price Relationships Based on Rules
W4 should be > 38% of W3 (minimum requirement)
38% of 980 = 372.4 points
This gives us minimum target: 2790 - 372.4 = 2417.6
Price Target Range Based on Rules:
Minimum: 2417.6 (38% retracement)
Maximum: 2300 (50% retracement)
Most probable: 2350-2400 (based on 43-45% retracement)
Time Considerations:
Since W2 was complex, W4 should be shorter in time
W4 should take between 20% to 100% of W2's time duration
Key Warning Signs:
If W4 goes below 2079 (W1), it would invalidate W5 setup
If W4 exceeds 50% of W3 (below 2300), probability of 5th wave failure increases
Most Likely Scenario:
A simple zigzag correction targeting 2350-2400 area, taking less time than W2, with oscillator crossing zero line at least twice during the movement.
The ideal scenario would see W4 as a zigzag pattern staying above 2300, not penetrating W1 high of 2079, and completing within a shorter timeframe than W2.
W1-W2: 2079-1810 (-269 points)
W2-W3: 1810-2790 (+980 points)
Let's create scenarios following the rules:
Scenario 1: Simple W4 Calculation
Since W2 is complex, W4 will likely be simple (alternation principle)
W3 movement = 980 points
Maximum allowed for W4 = 50% of W3 = 490 points
Therefore first target range: 2790 - 490 = 2300 level
Scenario 2: Price Relationships Based on Rules
W4 should be > 38% of W3 (minimum requirement)
38% of 980 = 372.4 points
This gives us minimum target: 2790 - 372.4 = 2417.6
Price Target Range Based on Rules:
Minimum: 2417.6 (38% retracement)
Maximum: 2300 (50% retracement)
Most probable: 2350-2400 (based on 43-45% retracement)
Time Considerations:
Since W2 was complex, W4 should be shorter in time
W4 should take between 20% to 100% of W2's time duration
Key Warning Signs:
If W4 goes below 2079 (W1), it would invalidate W5 setup
If W4 exceeds 50% of W3 (below 2300), probability of 5th wave failure increases
Most Likely Scenario:
A simple zigzag correction targeting 2350-2400 area, taking less time than W2, with oscillator crossing zero line at least twice during the movement.
The ideal scenario would see W4 as a zigzag pattern staying above 2300, not penetrating W1 high of 2079, and completing within a shorter timeframe than W2.
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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.