Expanded Flat correction?
Updated
Why am i inclined to believe that we are in a correction and not in an impulse wave up? Because i see bearish divergences on RSI and MACD on TF up to 1H. Possible targets for this correction (if my wave count si correct) 8.8k-8.6k. If you have a different idea don't be shy, share it, comment on the chart.
Note
The divergences gave a good signal but i think there is something wrong with my EW count. This might not have been an expanded flat and point B could have been the point were wave 5 (in blue) and 3 (circled in black) actually ended and the ABC correction started. Looking on a 4H TF this scenario seems plausible. The price bounced off the golden pocket zone (0.618-0.65 retrace) but if it goes lower (at the 0.786 retrace) i will have to do a recount from 7250 because in this case wave 4 (circled in black) will overlap heavily with wave 1 (circled in black).Note
For now i believe that this is the correct count because of the following reasons:
- in wave 4 (circled in black) wave C is a 1.618 extension of wave A
- wave 4 (circled in black) retraced to the golden pocket zone (0.618-0.65 of wave 3 circled in black)
- wave 4 (circled in black) overlaps with wave 1 (circled in black) very little which is allowed
Note
If we fall under 8455 we will have an Elliot Wave failure and this will give as another ABC correction (3 waves down).
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