Hi traders!
This is probably an unconventional count on the QQQ, at least I couldn't find it in the Elliott wave community so far. This count is strictly based on Fib ratios. In this approach, we only consider waves that precisely abide by certain ratios. If a wave doesn't fit into a ratio, it is part of a different wave, and we adjust our count until waves align with ratios with the highest possible accuracy.
When is this idea valid?
This idea is valid as long as QQQ does not make a higher high after the one of 14 June.
Where do we go from here?
We have completed wave C in the large diagonal and can expect a smaller ABC down to the lower trend line of the diagonal. After that a wave E is expected, but we shall watch out for a possible truncation.
How to trade it?
The current price level presents an immediate short opportunity, with the SL above the previous high. The target is the lower trend line of the diagonal around $328.
What if not?
Should QQQ go higher from here, the ending diagonal is invalidated and we have to assume more upside.
Happy trading!
This is probably an unconventional count on the QQQ, at least I couldn't find it in the Elliott wave community so far. This count is strictly based on Fib ratios. In this approach, we only consider waves that precisely abide by certain ratios. If a wave doesn't fit into a ratio, it is part of a different wave, and we adjust our count until waves align with ratios with the highest possible accuracy.
When is this idea valid?
This idea is valid as long as QQQ does not make a higher high after the one of 14 June.
Where do we go from here?
We have completed wave C in the large diagonal and can expect a smaller ABC down to the lower trend line of the diagonal. After that a wave E is expected, but we shall watch out for a possible truncation.
How to trade it?
The current price level presents an immediate short opportunity, with the SL above the previous high. The target is the lower trend line of the diagonal around $328.
What if not?
Should QQQ go higher from here, the ending diagonal is invalidated and we have to assume more upside.
Happy trading!
Trade active
We can adjust the upper diagonal line, using the two touchpoints marked in red. The idea remains valid until the trend line is broken substantially (not just a fakeout):
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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.