Price Pattern: functions and outcomes
This simple pattern definition of the decline shows repetitive wave action during the decline since Dec 2013.
Pink triangle: function - progress decline, outcome - target midline TL
Blue triangle: function - retrace decline rapidly in 3 waves, outcome - target upper TL
Yellow arc: function - consolidate, outcome - touch TL below retrace top
Based on this paint-by-numbers visual method, we are currently in a declining pattern with target zone 260-380. Depending on wave degree, price may drop terminally to low $100 levels.
Any price action opening and closing above the define pink area will invalidate the declining pattern assumption. Breach of the upper TL (currently at 440 straight up) will confirm trend reversal.
Until reversal is confirmed, the moment is ripe for progressively buying into new price lows.
Pink triangle: function - progress decline, outcome - target midline TL
Blue triangle: function - retrace decline rapidly in 3 waves, outcome - target upper TL
Yellow arc: function - consolidate, outcome - touch TL below retrace top
Based on this paint-by-numbers visual method, we are currently in a declining pattern with target zone 260-380. Depending on wave degree, price may drop terminally to low $100 levels.
Any price action opening and closing above the define pink area will invalidate the declining pattern assumption. Breach of the upper TL (currently at 440 straight up) will confirm trend reversal.
Until reversal is confirmed, the moment is ripe for progressively buying into new price lows.
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