CRWD corrective pattern above ATH. Hello guys! Welcome to another idea on Stocks. Today we will be analyzing CRWD in a very straightforward way.
Let's start with the important elements of the chart:
a) The price is inside an ascending channel. That's our macrostructure
b) After a top on February 2021, the price could not go through that level again. Until Jun where we had a breakout.
c) As you can see now, the price is making a corrective formation above the previous ATH in the resistance zone.
d) The current pattern is a triangle, where "E," the 5th wave, is almost finished.
e) Ok, where is the activation level for this view? We have defined a green horizontal line where if the price reaches it, we will consider that the stock has the potential to go towards the higher zone of the ascending channel (that's our macrostructure)
f) Let's assume the vision is activated; our cancelation level is below the triangle pattern. There we will consider that our view was wrong, and we need to recalculate. However, if the price never reaches the activation level and keeps falling below the triangle pattern, we will consider that our view didn't proceed as expected, and we change our perspective.
g) How sure you are about this analysis? Like flipping a coin, remember technical analysis is a statistical discipline where you NEVER EVER will know with certainty what will happen. However, you can work on your average win 50% and develop 1 : 2 setups around there.
Thanks for reading, guys!
