Centrica - NeoWave Neutral Triangle trade plan
If you follow me you will know that I have been expecting Centrica to retrace to the Golden Zone. It has finally hit target and I have entered the trade. My trade plan is based on a NeoWave Neutral Triangle. A Neutral Triangle is a five-legged correction where the middle wave C is the longest. To obtain the price target for the E wave you can draw a channel across the ends of waves B - D and clone this and position it at the end of wave A. As you can see the price target has confluence with the 0.618 from the swing high to low. A time target can also be projected because wave A and E tend to be similar in terms of time. After the conclusion of wave E, the thrust implications are between 75%-100% of wave C (but can extend to 161%). Good luck if you are trading CNA.
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