TRONLong
Embedded Head and Shoulders in Ascding Rt Triangle; 267% profit
Updated
TRX is finishing out wave V of 1 of an impulse with target at 0.0934. It is confirmed by an embedded head and shoulders pattern, found within an ascending right triangle. The ascending triangle is formed via the middle of the three trend lines at the bottom of the chart, with the horizontal trend line at $0.058. The bottom trend line of the triangle was copied and pasted to show the support lines of the smaller head and shoulders. The bottom trend line shows the support that will make up the bottom of the right shoulder. The top of the three trend lines is the neckline of the smaller head and shoulders pattern. It projects a price of $0.0648 by doubling the height from the head at 0.0211.
The top of the ascending right triangle also shows a neckline for a larger head and shoulders pattern. The left shoulder is at 03/09, the head is at 03/18, and the right shoulder is the bottom of wave 2 at 03/23 (projected). The height to the neckline from the head is 0.0354 and price is then doubled for projection up to $0.0934.
Wave Analysis for Wave 1 of impulse:
subwave V touches the neckline by matching height of subwave I,
Wave Analysis for Wave 2 of impulse:
TRX then bounces down to lower support found from matching up with the left shoulder. This completes a 38.2% retrace.
Wave 2 is typically your best option for laddering in your buy ins. Bottom of Wave 2 is projected at $0.035.
Wave Analysis for Wave 3 of impulse:
1.62 ratio of wave 1; height = 0.0324; $0.0674 = big wave 3 target
height of subwave I: 0.0085; price = 0.0438; this touches the neckline and bounces.
target of subwave II, 50% retrace of wave I = $0.04
target of subwave III, extended : 2.62 ratio of 1 = 0.04 + 0.0223 = $0.0623 (III of 3 is often extended)
target of subwave IV, 23.6% retrace = -0.0053 = $0.057 ... sitting on support of ascending triangle
target of subwave V, height = 0.0085; ratio wave 1 = 1:1; target $0.0655.
The target using standard ratios for subwave analysis on wave 3 lies between $0.0674 (projected 1.62 ratio of wave 1) and $0.0648 (projected price from breaching the neckline on head and shoulders patter).
Wave Analysis for Wave 4 of impulse:
23% retrace takes us back to the upper trend line of the ascending triangle which is now support.
Wave Analysis of Wave 5 of impulse:
projected height is 0.035 which is the neckline height and about 1.75 of wave 1, not a standard ratio.
Wave 5 may have a lower target at $0.078 which would touch a resistance line in early May; the $0.0934 target would then be seen in a subsequent impulse.
The top of the ascending right triangle also shows a neckline for a larger head and shoulders pattern. The left shoulder is at 03/09, the head is at 03/18, and the right shoulder is the bottom of wave 2 at 03/23 (projected). The height to the neckline from the head is 0.0354 and price is then doubled for projection up to $0.0934.
Wave Analysis for Wave 1 of impulse:
subwave V touches the neckline by matching height of subwave I,
Wave Analysis for Wave 2 of impulse:
TRX then bounces down to lower support found from matching up with the left shoulder. This completes a 38.2% retrace.
Wave 2 is typically your best option for laddering in your buy ins. Bottom of Wave 2 is projected at $0.035.
Wave Analysis for Wave 3 of impulse:
1.62 ratio of wave 1; height = 0.0324; $0.0674 = big wave 3 target
height of subwave I: 0.0085; price = 0.0438; this touches the neckline and bounces.
target of subwave II, 50% retrace of wave I = $0.04
target of subwave III, extended : 2.62 ratio of 1 = 0.04 + 0.0223 = $0.0623 (III of 3 is often extended)
target of subwave IV, 23.6% retrace = -0.0053 = $0.057 ... sitting on support of ascending triangle
target of subwave V, height = 0.0085; ratio wave 1 = 1:1; target $0.0655.
The target using standard ratios for subwave analysis on wave 3 lies between $0.0674 (projected 1.62 ratio of wave 1) and $0.0648 (projected price from breaching the neckline on head and shoulders patter).
Wave Analysis for Wave 4 of impulse:
23% retrace takes us back to the upper trend line of the ascending triangle which is now support.
Wave Analysis of Wave 5 of impulse:
projected height is 0.035 which is the neckline height and about 1.75 of wave 1, not a standard ratio.
Wave 5 may have a lower target at $0.078 which would touch a resistance line in early May; the $0.0934 target would then be seen in a subsequent impulse.
Note
It has been common for TRX to show an extended 5th wave, followed by a deep retrace afterwards, usually around 88%; especially when it is wave 1 of a larger trend and the retrace is wave 2. the count below I think may be a better fit.wave 3 height = 0.02 ratio = 1:1 wave 1; target 0.055 (near upper resistance)
wave 1, 2, 3 combined height = 0.033
wave 4 completes a 50% retrace with target = 0.0455 on 04/09 touches bottom support of triangle. Thus keeping the ascending right triangle formation in tact closer to the apex.
wave 5 height = 0.0535; 1.62 ratio of combined waves1-3; target 0.0989 - confirming the price minimum of the head and shoulders pattern.
total impulse height = 0.0769; this would be wave 1 of a primary wave impulse upwards.
primary wave 2 has 88% retrace = height -0.0677 = target $0.032
primary wave 3 would then be very large taking us back near the all time high...
ultimately TRX is carving out a cup and handle and the primary wave impulse will make up the right hand side of the cup.
Note
so far so good on the prediction, just a very slight hiccup...we saw a bounce at the bottom of the triangle's support line, acting as resistance since wave IV is under it as a bullwick.
Wave IV has completed and Wave V has started at the 38.2% retrace of wave III. This retrace level was predicted on the chart, but the bounce from triangle resistance entry point was not.
on the candlestick 2 hours ago near 10AM EDT 03/22 it is showing a great hammer, depicting a great trend reversal sign, which is the sign that Wave V has started.
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.