We might have an impulse wave forming here, where waves (1) and (2) have been completed. Wave (2) correction has bounced off the "golden pocket" fib retracement, where a long position is entered.
Strategy: Buy the correction wave (2) low, and ride wave (3) to about a 1:1 fib extension of wave (1). Once target has been met, a trailing stop loss may allow larger gains. This trade idea is cancelled if the price corrects below wave (1)'s low.
Long position details:
Time-frame - 10 hours to several days
Risk/reward ratio - around 4
Entry - Watch for reversal near the 0.65 fib retracement (in yellow) or lower while using laddered buys
Stop loss - below longterm uptrend, below 0.786 fib retracement or lower when using laddered buys
Target 1 - 100% Fib Extension (conservative)
Target 2 - 168% Fib Extension (aggressive) or implement a trailing stop loss after the first Target has been reached
This is simply a trading idea and not actual financial advice. Remember to trade safe!
Strategy: Buy the correction wave (2) low, and ride wave (3) to about a 1:1 fib extension of wave (1). Once target has been met, a trailing stop loss may allow larger gains. This trade idea is cancelled if the price corrects below wave (1)'s low.
Long position details:
Time-frame - 10 hours to several days
Risk/reward ratio - around 4
Entry - Watch for reversal near the 0.65 fib retracement (in yellow) or lower while using laddered buys
Stop loss - below longterm uptrend, below 0.786 fib retracement or lower when using laddered buys
Target 1 - 100% Fib Extension (conservative)
Target 2 - 168% Fib Extension (aggressive) or implement a trailing stop loss after the first Target has been reached
This is simply a trading idea and not actual financial advice. Remember to trade safe!
Note
There is a possible correction in progress with a strange lower high for wave (3)... Possible retracement levels are shown, but we must stay above the wave (3) low to continue the uptrend.Note
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.