Do you ever consider the possibility that when is the price may be more important than where is the price?
By when, of course I mean the wave structure.
This morning’s wave 5 was a short one and it made a divergent double top with wave 3. I can’t draw from here, but I’ll walk you through it.
See the RSI2 peak in the middle reaching above 85? That was the measuring leg of wave 1up that was followed by a lower peak making the wave complete. Wave 3 kicked in upon taking out the pullback low of wave 1. Wave 3 made its measuring leg above 93 followed by the divergent higher high / equal RSI2 read. Wave 4 was the pullback to E16 (in blue), and wave 5 had a no strength push for a first leg and the second – that set up the double top, deepened the RSI2 divergence further.
What the market is doing now is setting up the first measuring leg of wave 1 (whoop) down.
The following applies in Fading Market
Bam can be faded: on the way back it would take out the back swing of Whoop.
Close it out beyond whoop upon an RSI2 divergence or upon the RSI2 swing surpassing the previous reference.
The WBB count starts from an outer stretch beyond E16.
Fade the struggle
Boogie has to make a measuring leg first and then beat it with a divergence, thus you should load up for the counter move on Boogie when it is applying pressure on its thrust peak failing to get something stick beyond.
Good going on this tiny account with 40%+ gains both days this week since the funding.
My best daily gain in September was 92.5% on a different account.
I did want to mention about how ominous the looks of the triple resistance above is on EUR (the Moat in Red, the median in white and the sample high in red – never seen this looks before, EUR may get creamed in the near future.
Price may be at a stretch here for a fading market (brownie points) but we at Whoop Bam Boogie Trading cannot advocate fading an opening move while the measuring leg is still printing. If short, consider a partial cover.