XRPUSD - Triangle as fourth wave
Updated
Hello everyone,
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That being said, XRPUSD appears to be forming a triangle as a fourth wave. We have several strong levels of support around $0,2056 and $0,20, and I would expect that last wave of this triangle to stop somewhere in there. A true stop would be at $0,1977 or lower, which is the top of the first wave.
The support zone is $0,2056-$0,20 also coincides with a trendline that is still respected so far. Personally, I will be placing a scaled buy order in this zone.
Projecting the end of the fifth is tricky so far. For starters, I will be using the height of the triangle from around the present level of $0,215 as a cautious start, which would give a target around $0,245; a very nice risk-to-reward for such a trade. This area also coincides with the fourth degree of the last impulse wave on a larger degree.
The DMI isn't showing divergence yet, but I expect it will do so when it reaches the support zone on the last wave down on this triangle, which would be confirmation for a long position.
Let's see how things work out!
Feel free to comment and subscribe if you like. Do keep in mind that this is not trading advice, and that you should always make up your own mind.
That being said, XRPUSD appears to be forming a triangle as a fourth wave. We have several strong levels of support around $0,2056 and $0,20, and I would expect that last wave of this triangle to stop somewhere in there. A true stop would be at $0,1977 or lower, which is the top of the first wave.
The support zone is $0,2056-$0,20 also coincides with a trendline that is still respected so far. Personally, I will be placing a scaled buy order in this zone.
Projecting the end of the fifth is tricky so far. For starters, I will be using the height of the triangle from around the present level of $0,215 as a cautious start, which would give a target around $0,245; a very nice risk-to-reward for such a trade. This area also coincides with the fourth degree of the last impulse wave on a larger degree.
The DMI isn't showing divergence yet, but I expect it will do so when it reaches the support zone on the last wave down on this triangle, which would be confirmation for a long position.
Let's see how things work out!
Note
Even more interesting; might we be forming a zig-zag correction?Having started off this move from the latest Low with a leading diagonal, followed by a double zig-zag, it might not be impossible.
A further count will have to be done to support this idea, but I'm considering the possibility that this coming fifth wave shall be extended, reaching towards the $0,30 region.
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