SOS - Retrace may be complete
The initial move up is very messy here as you can see in the chart. There's a lot of spotty price action making it difficult to get a great count, but what I can say is from the bottom in December 2020 to where we are today, I see a potential for a 5 wave structure on a smaller degree that has wave 4 nearing completion.
We are close to the 50% retracement on my measurement of wave 2 to wave 3. I'm willing to bet that we see a bounce from here. What I do not know is if this is the bounce that will take us to the target or if this is a dead cat bounce and we may find ourselves right back where we are today.
I'd be willing to take a play around here with a tight stop loss and maybe cutting part of the position near that gap fill at the 23.6% fib retracement level (around $9.69), and loading back up on that other potential pullback.
Here's the deal with this chart. Wave 2 took several days, and wave 4 usually takes a little bit longer than wave 2. In this case, I don't think we're done correcting yet, so this may be a suckers rally that we are going into. Careful for the fade.
Trade carefully friends!
We are close to the 50% retracement on my measurement of wave 2 to wave 3. I'm willing to bet that we see a bounce from here. What I do not know is if this is the bounce that will take us to the target or if this is a dead cat bounce and we may find ourselves right back where we are today.
I'd be willing to take a play around here with a tight stop loss and maybe cutting part of the position near that gap fill at the 23.6% fib retracement level (around $9.69), and loading back up on that other potential pullback.
Here's the deal with this chart. Wave 2 took several days, and wave 4 usually takes a little bit longer than wave 2. In this case, I don't think we're done correcting yet, so this may be a suckers rally that we are going into. Careful for the fade.
Trade carefully friends!
CE - BitDoctor
Access our private indicators and join our Premium Room: bitdoctor.org
Beware of scams - I'll never DM you asking for funds.
Access our private indicators and join our Premium Room: bitdoctor.org
Beware of scams - I'll never DM you asking for funds.
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.