Here is what I'm looking at as a NEUTRAL STRATEGY
1) We know that 5 WAVES DOWN can be the start of a LARGER correction
or
2) That it could be the end of a C wave
Both cases bring the price to my RED BOX or decision area.
I've said earlier (previous illustration) that 60k - 62k would be the area of interest but I'm betting that 62k - 65k should actually be the one.
I'll still keep 60k aside don't worry.
The normal wave 5 projection goes just below my FALLING WEDGE pattern. So YES wee the price action could do a small FAKEOUT by going outside of the WEDGE to trap some BEARS and STOP some BULLS or the wedge could simple act as support.
Time will tell.
If you really want to get into this SWING as early as possible once you see the previous low being taken, then you can put a STOP LOSS outside of the WEDGE and the RED SUPPORT LINE around 50.5k. Once the REVERSAL is confirmed then you could raise your SL to a better position.
I won't play it like that as I need to find a better risk reward ratio to have nice ENTRY in SIZE. I have a strict risk management rules. The better my entry the better my rewards.
1) We know that 5 WAVES DOWN can be the start of a LARGER correction
or
2) That it could be the end of a C wave
Both cases bring the price to my RED BOX or decision area.
I've said earlier (previous illustration) that 60k - 62k would be the area of interest but I'm betting that 62k - 65k should actually be the one.
I'll still keep 60k aside don't worry.
The normal wave 5 projection goes just below my FALLING WEDGE pattern. So YES wee the price action could do a small FAKEOUT by going outside of the WEDGE to trap some BEARS and STOP some BULLS or the wedge could simple act as support.
Time will tell.
If you really want to get into this SWING as early as possible once you see the previous low being taken, then you can put a STOP LOSS outside of the WEDGE and the RED SUPPORT LINE around 50.5k. Once the REVERSAL is confirmed then you could raise your SL to a better position.
I won't play it like that as I need to find a better risk reward ratio to have nice ENTRY in SIZE. I have a strict risk management rules. The better my entry the better my rewards.