4th wave correction and we go up again!
Updated
As you can see on the chart I use 50 and 200 EMAs and MACD to count the waves.
Whenever we see a valid 5-wave structure we can also see the corresponding reactions with 50 and 200 EMAs.
- First we see 50 cross above 200 EMA for the first wave to the upside.
- Then we see a cross below 200 for 2nd wave correction and the gap between EMAs turns red.
- A bullish crossover for the 3rd wave and the band turns green.
- After that another cross below 200 EMA for 4th wave correction and finally the cross above 200 EMA for the completion of 5-wave structure.
So far we have completed the 3rd wave and the highest MACD peak is indicative of that. Although that peak accounts for the minor 3rd wave of the larger 3rd wave and not the end of the 3rd wave itself.
Using Fib-retracement I assume we will go down to 0.5 or 0.618 (green levels) of wave-3 to complete the 4th wave correction; however the possibility of a shallow retracement to 0.382 is still on the table.
Once the 50 and 200 EMA do a bullish crossover and the band turns green and stays green for a while that should be translated as the beginning of 5th wave.
I see Fib-retracement extension level -0.272 of 3rd wave as the target for the end of 5th wave that takes to 27K or even slightly higher.
Whenever we see a valid 5-wave structure we can also see the corresponding reactions with 50 and 200 EMAs.
- First we see 50 cross above 200 EMA for the first wave to the upside.
- Then we see a cross below 200 for 2nd wave correction and the gap between EMAs turns red.
- A bullish crossover for the 3rd wave and the band turns green.
- After that another cross below 200 EMA for 4th wave correction and finally the cross above 200 EMA for the completion of 5-wave structure.
So far we have completed the 3rd wave and the highest MACD peak is indicative of that. Although that peak accounts for the minor 3rd wave of the larger 3rd wave and not the end of the 3rd wave itself.
Using Fib-retracement I assume we will go down to 0.5 or 0.618 (green levels) of wave-3 to complete the 4th wave correction; however the possibility of a shallow retracement to 0.382 is still on the table.
Once the 50 and 200 EMA do a bullish crossover and the band turns green and stays green for a while that should be translated as the beginning of 5th wave.
I see Fib-retracement extension level -0.272 of 3rd wave as the target for the end of 5th wave that takes to 27K or even slightly higher.
Note
Played out almost similar to what I expected but I assume we are not done yet. I expect sub 20K briefly before the continuation to the upside.
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