Hi traders!
VET gives us a very clean chart with a short opportunity at hand.
How to trade it?
According to the bearish EW count we are in the beginning of a wave 5 down. The wedge breakout gives us an entry level in case price comes back to re-test it in a smaller ABC correction (red box).
Where do we go from here?
Let's assume that the current wave 5 down might be truncated - just to be on the safe side. That would give us a double bottom with TP level around the green box (0.618 fib extension of the previous wave). If you are a passionate bear, you can hold longer until the 1 extension, or even 1.126 (scroll down).
What if not?
Price may retrace back to the apex of the wedge - further short opportunities present themselves at the Fib extensions 1.236 and 1.618. If price breaks these levels, the idea is invalidated and we are in a bullish impulse wave up and we can re-count to adjust for bullish entries.
Happy trading!
VET gives us a very clean chart with a short opportunity at hand.
How to trade it?
According to the bearish EW count we are in the beginning of a wave 5 down. The wedge breakout gives us an entry level in case price comes back to re-test it in a smaller ABC correction (red box).
Where do we go from here?
Let's assume that the current wave 5 down might be truncated - just to be on the safe side. That would give us a double bottom with TP level around the green box (0.618 fib extension of the previous wave). If you are a passionate bear, you can hold longer until the 1 extension, or even 1.126 (scroll down).
What if not?
Price may retrace back to the apex of the wedge - further short opportunities present themselves at the Fib extensions 1.236 and 1.618. If price breaks these levels, the idea is invalidated and we are in a bullish impulse wave up and we can re-count to adjust for bullish entries.
Happy trading!
Trade closed: target reached
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.
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.