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Correctivestructure

How to use Corrective Structures to develop a SetupGreat day to learn something, today; we will understand how to use corrective structures to develop a setup on any chart. a) There are 3 types of Corrective Structures, Zig-Zag (first example), Flat (Second Example), Triangles (third example). Use them as an archetype to spot them on a chart. b) Now that you understand the types of corrective structures is time to look at one on the chart ( you can see a Flag Pattern on the real chart) c) Should I trade all the corrective structures I see? NO, YOU DONT! You need Context. Your corrective structure must be well-positioned on the chart, it can be a Trendline, or it can be a Support. Never trade isolated patterns. d) Then you need a clear path in the direction you are expecting. In this case, we are at All-time Highs, so we don't have any Resistance e) How can I calculate my target? Use Fibonacci Extensions. Draw it from the base of the impulse towards its top (where the corrective structure starts) and then take it back to the impulse's bottom. Pay attention to 2 levels only 1.27 for Break Even, and 1.618 for Target f) Only take setups with a risk-reward ratio higher than 1.5 Have a Great Day!!!
Editors' picks
NYSE:CRMEducation
by ThinkingAntsOk
28
CADJPY 81.348 + 2.82 % SHORT IDEA * PRICE ACTION & CORRECTIONHEY EVERYONE At it once more here's one on the CANADIAN DOLLAR / YEN the pair just spiked with the bulls now showing signs of slowing down in momentum as the pair approaches resistance level 81.554, waiting to watch price on this one as I've set a trigger zone where i'll be watching price before looking for that correction to the down side it possible the pair may not hit this trigger zone but strategies are in place if this happens as always for entries we scale down to smaller time-frames to determine entries and so forth. many stars must align with the plan before executing the trade, kindly follow your rules. LET'S SEE HOW IT GOES.. HAPPY TRADING EVERYONE & LET YOUR WINS RUN... _________________________________________________________________________________________________________________________ ENTRY & SL - FOLLOW YOUR RULES here's some of my rules if they help. 1. look at structure be it descending channels, pennants and so forth. 2. RSI is overbought/oversold so will be looking for a pull back to structure before continuation. 3. will be looking for entries from 30M , 1H, 2H & 4H time-frames if taking the trade long term. 4. aggressive trades can be executed on the pull back 5. price action must definitely align with the plan.' 6. structure definitely 7. the 20 EMA must be respected as support / see a bounce at this structure 8. FIBONACCI EXTENSIONS AS GUIDELINES FOR SL & TP'S . 9. CANDLE STICK PATTERNS. so i will most like's enter this one in a bit but i hope this idea assists in any way on your trading plan. RISK-MANAGEMENT PERIOD - SWING TRADE __________________________________________________________________________________________________________________________ If this idea helps with your trading plan kindly leave a like definitely appreciate it.
Short
by PULEMokhothu
1
EURJPY 124.633 + 1.57 % SHORT IDEA * CORRECTION & PRICE ACTIONHELLO EVERYONE Another idea this time looking at the EURO / YEN which just spiked with the bull on this one looking at it from the third strike stratergy since well: 1. we where in a down trend. 2. multiple swing lows 3. failed to break resistance structure will be taking this market execution or pending orders targeting correction of this move by the bears the Fibonacci level aligning well with structure is 78.6% will be looking for confirmations and definitely price. for entries we scale down to smaller time-frames to determine entries and so forth. many stars must align with the plan before executing the trade, kindly follow your rules. LET'S SEE HOW IT GOES.. HAPPY TRADING EVERYONE & LET YOUR WINS RUN... _________________________________________________________________________________________________________________________ ENTRY & SL - FOLLOW YOUR RULES here's some of my rules if they help. 1. look at structure be it descending channels, pennants and so forth. 2. RSI is overbought/oversold so will be looking for a pull back to structure before continuation. 3. will be looking for entries from 30M , 1H, 2H & 4H time-frames if taking the trade long term. 4. aggressive trades can be executed on the pull back 5. price action must definitely align with the plan.' 6. structure definitely 7. the 20 EMA must be respected as support / see a bounce at this structure 8. FIBONACCI EXTENSIONS AS GUIDELINES FOR SL & TP'S . 9. CANDLE STICK PATTERNS. so i will most like's enter this one in a bit but i hope this idea assists in any way on your trading plan. RISK-MANAGEMENT PERIOD - SWING TRADE __________________________________________________________________________________________________________________________ If this idea helps with your trading plan kindly leave a like definitely appreciate it.
Short
by PULEMokhothu
ETH: The Healthy Correction Before Take Off!My Fellow Crypto Traders, Appreciate you taking the time to view my analysis in which I hope you may find it beneficial. Please be sure to “LIKE” if you indeed find my analysis useful and/or find my analysis intriguing. Cheers & Happy Trading! ---------------------------------------------------------------------------------------------------------------------------------------------------- ANALYSIS: ETH has been on quite the run w/ BTC leading the way in which we should see BTC enter a correction/accumulation phase. Thus, we should see a new cycle of bullishness from Alts, with ETH leading the way, and LINK on ETH's heals. So, ETH could slightly correct back down to around $447 to regain momentum to break the $468 resistance, however, I believe a deeper correction is needed to break the $468 resistance, which the RSI supports this narrative. Therefore, we could see another 200EMA bounce before the bullish fever takes ETH beyond $488, and on through $500. Moreover, BUY BUY BUY as much ETH as possible, because these prices are relatively cheap, due to ETH being undervalued. Might not see these price levels ever again!
Long
by AB_Trading-Intelligence
USDTRY 8.2554 - 2.61% SHORT IDEA* CONTINUATION PATTENS HELLO EVERYONE Here's an idea on the DOLLAR/ TURKISH LIRA which opened with a gap and an aggressive fall with the bears looking for some correction of this move but we'll definitely see continuation to the downside, now the structure aligning with our fib levels is the resistance level 7.96612 which will be our aggressive target going down with the bears for long term updates lets wait for now and see what price tells us. HEY EVERYONE Here's a look at the EURO / DOLLAR pair heading into a new week the pair is currently trading in a bull frag which it can break in any direction but looking at the momentum push with the bulls looking for continuation of this move as it would be premature to go against the trend seeing no signs of slowing down on the pair so on higher time-frames we just have an overview of direction and what is the bigger picture in the markets. for entries we scale down to smaller time-frames to determine entries and so forth. many stars must align with the plan before executing the trade, kindly follow your rules. LET'S SEE HOW IT GOES.. HAPPY TRADING EVERYONE & LET YOUR WINS RUN... _________________________________________________________________________________________________________________________ ENTRY & SL - FOLLOW YOUR RULES here's some of my rules if they help. 1. look at structure be it descending channels, pennants and so forth. 2. RSI is overbought/oversold so will be looking for a pull back to structure before continuation. 3. will be looking for entries from 30M , 1H, 2H & 4H time-frames if taking the trade long term. 4. aggressive trades can be executed on the pull back 5. price action must definitely align with the plan.' 6. structure definitely 7. the 20 EMA must be respected as support / see a bounce at this structure 8. FIBONACCI EXTENSIONS AS GUIDELINES FOR SL & TP'S . 9. CANDLE STICK PATTERNS. so i will most like's enter this one in a bit but i hope this idea assists in any way on your trading plan. RISK-MANAGEMENT PERIOD - SWING TRADE __________________________________________________________________________________________________________________________ If this idea helps with your trading plan kindly leave a like definitely appreciate it.
Short
by PULEMokhothu
8
AUDNZD SUPPORTS S&P500Hello traders! AUDNZD and S&P500 are in positive correlation, not tick by tick, but mostly they are moving together. Even when we see a deviation, they sooner or later somehow catch up each other. Well, after recent mess up and down on S&P500, seems like it remains bullish, it's just in consolidation mode before the uptrend resumes and it can be easily supportive by AUDNZD currency pair, where we see a quite clear three-wave corrective decline within uptrend. It's mainly because of strong Australian Dollar in risk-on sentiment. So, with current strong bounce on both, AUDNZD and S&P500, seems like we will probably see them back to highs in the upcoming days/weeks, especially if AUDNZD starts breaking above channel resistance line. Generally speaking, stocks remain bullish, so as Aussie in risk-on sentiment, we just have to be aware of short-term, intraday corrective pullback early next week. Trade smart! If you like what we do, then please like and share our idea. Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
by ew-forecast
No Election Winner For Weeks, No ProblemElection day is finally here. My wave projections have changed a little, but not for the worst. I previously suspected us to be near the end of a major Grand SuperCycle, but I no longer believe that is the case. I shifted some of my waves around after running multiple tests and found a different mapping of the waves provided for more consistent ratios of wave lengths and movements. I previously had the “COVID crash” ending at Cycle wave 4 and leaving us about 18 months to complete the final Cycle wave 5. I now have that bottom in March ending Cycle wave 2 after it began in September 2019. Furthermore, instead of Cycle wave 1 only lasting a few years (2009 to 2011), I now had it run 9 years (March 2009 to September 2019. This all means the major market crash I was projecting in 2022 is now pushed to 2030 or later. Also, we are in for a major market boom beginning this December. But first, we must move down. The next few weeks will likely be difficult as we wait for results, legal challenges, and other circus acts. I believe we are in the early stages of Intermediate wave 2. The top we find today, or likely found this morning will be the end of Minute wave 4 and we should find the end of Minute wave 5 / Minor wave A on Thursday around 3150.39. We should tick up for Minor wave B until around November 20 with a top around 3384.68. We should finally end Intermediate wave 2 in mid-December (Dec 14-17) around 3024.09. THE NUMBERS Why those levels on those dates? Intermediate wave 2’s typically retrace the length of wave 1 by 34.49%. This would have wave 2 lasting about 48 trading days. Of those days, wave A normally comprises 37.55% (18 days), B is 25.20% (12 days), and C is 37.24% (18 days). Intermediate wave 2 typically retraces the movement of wave 1 by about 45%. The minimum retracement over the past 88 years is 28.84%. I am conservatively sticking with a retracement around Fibonacci 38.2%. This would have wave 2 ending around 3021.44. Wave A typically accounts for 77.9% of the wave’s overall movement which would equate to a drop of 399.46 or a bottom around 3150.39. Wave B makes up 45.69% of the total or a rise of 234.29 points with a top around 3384.68. Finally wave C accounts for 70.32% of the larger wave which is a drop of 360.59 with the bottom around 3024.09. REAL WORLD CAUSATION Why the roller coaster? Lack of a clear winner tonight will likely cause some anxiety, additionally multiple states will not have all ballots counted until early next week. We may get the first glimpse of a projected winner after that but Congress must make it official and the lawyers on either side will likely be busy. Right now, Electoral College vote is set for December 14 and the lame duck Congress would certify shortly after. Once the winner is declared the jubilation will begin. I think I know who wins based on the trajectory of the market. We are about to start Intermediate wave 3 in Cycle wave 3 in Primary wave 1. This will lead to huge gains on continued cheap debt. The market is working on its day of reckoning when debt will be due. This date will be catastrophic, especially if we have another decade or more of cheap debt to rack up. Beyond 2030 will certainly see a prolonged great depression, but worrying about that now is unnecessary as the event is inevitable. If the index moves above 3466 before it drops below 3234, my projections and even wave structure could be wrong. We shall see. Let me know where you think this mess is going. Thanks for reading.
SP:SPXShort
by StockSignaler
1
Gold Can Be In Final Stages Of A Corrective Set-backHello traders! Gold is very interesting asset that will always be on investors watchlist, especially during unstable period like we are facing now, and with QE in full force, I think metals has plenty of room to rise. From a technical point of view we see Gold moving to the downside since August, but the price action is very slow and choppy with overlapping wave structure, which actually suggests a corrective movement, ideally a complex W-X-Y decline within a higher degree wave IV) that can find the support around 1800 level. This level is also interesting if we consider that it comes in at 100 Daily SMA with a similar length-retracement compared to March, while from EW perspective it can be completing the final wave C of Y. So, watch out for a limited downside and be aware of a bullish reversal as we approach the end of 2020. To me it’s important to see a minor bounce in five waves, before I can call end of a corrective retracement which would be then a constructive looking for opportunities on the long side. Trade well! Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
OANDA:XAUUSD
by ew-forecast
5
EW Analysis: ETHUSD May Face Strong ResistanceHello traders! Today we will talk about Ethereum (ETHUSD), its price action from technical point of view and wave structure from Elliott Wave perspective. Well, BTC is in a massive rise but this is mainly because of BTC.Dominance, which is after a long time, finally back in the game and it can be just the beginning of a new cycle. That's why ALTcoins, such as ETH and others are in a slow recovery mode, which we see it as a correction. As you can see, ETHUSD has slow and corrective (a)-(b)-(c) structure in wave "b" and it's right now approaching strong 400-420 resistance area around that resistance line of a corrective channel and important 50%- 61,8% Fibonacci retracement. So, watch out at this stage, because wave (c) can be forming a potential ending diagonal and we know how powerful wedge patterns are. If we are on the right path and ETH turns sharply and impulsively down from projected resistance zone, then it could be easily headed even lower as part of a deeper a-b-c correction down to 255 - 215 support zone. Good luck and trade well! If you like what we do, then please support us with a like and share! Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
BITSTAMP:ETHUSD
by ew-forecast
5
APPL Due for A Correction Before Earnings?My Fellow Traders, Appreciate you taking the time to view my analysis, in which I hope you may find it beneficial. Please be sure to “LIKE” if you indeed find my analysis useful and/or find my analysis intriguing. Also, I’m new to charting game and the crypto/stock space. So, if you have any constructive criticism or tips, please share. Cheers & Happy Trading! --------------------------------------------------------------------------------------------------------------------- ANALYSIS: APPL seems to be falling back to support around the $117.00 region, which could fail to hold due to the circus act that is going on in Congress regarding stimulus. Therefore, I am predicting APPL to have a slight correction before earnings as it has in the past, and then gear up for a strong move to the upside once the announcement of earnings. *Note: Any stimulus news would be a huge catalyst to the upside. So, keep your ears to the street regarding stimulus news.
NASDAQ:AAPL
by AB_Trading-Intelligence
EW Analysis: Cable Can See More Weakness After A PullbackHello tradars! Today we will talk about Cable (GBPUSD) and its price action + wave structure from Elliott Wave perspective. Cable is turning south and it's pointing even lower after we noticed a bigger A-B-C corrective rally from March lows. So currently, after recent broken channel support line, we are tracking at least a three-wave A/1-B/2-C/3 decline that can send the price at least back to the 1.2250 support area. But, before that sell-off for wave C/3, we may see a temporary intraday recovery for wave "c" to complete an a-b-c, a higher degree expanded flat correction in wave B/2, where ideal resistance would be at that trendline connected from March lows, 61,8% Fibonacci retracement and 1.30 - 1.32 zone. We will expect more weakness for GBPUSD as long as it's trading below 1.3488 invalidation level. It is worth reporting that the UK Prime Minister Boris Johnson will hold talks with the European Commission President Ursula von der Leyen agreed in a phone call on Saturday to step up negotiations on a post-Brexit deal. Given the lack of progress in the ninth round of Brexit negotiations, the efforts to close gaps extended some support to the British pound. However, it might be only a temporary support and recovery ahead of important October 15 deadline for Brexit deal . All that being said, wave structures and upcoming news match nicely, so timing can be perfect. Be humble and trade smart! If you like what we do, then please like and share the idea! Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
by ew-forecast
6
EW Analysis: GOLD Is Just In A Higher Degree Corrective PhaseHello traders! Today we will talk about GOLD and its price action + wave structure from Elliott Wave perspective. Well, GOLD was sideways with a slow price action for the last couple of weeks, which we see it as part of a bearish triangle formation in wave B. However, we know that triangles cannot occur in wave 2 and this is the main reason why we think that GOLD is just in a higher degree A-B-C correction, where we are currently tracking the final wave C that can send the price down to projected support zone between 1820 - 1765 area. Later then, once an A-B-C correction fully unfolds, we will probably see price price confirmation with strong and impulsive rebound, which will give us signal for a completed corrective decline, but until then, we have to expect more weakness. Be humble and trade smart! If you like what we do, then please like and share the idea! Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
OANDA:XAUUSD
by ew-forecast
2