Micro Softening At 5 Prime | #NASDAQ #technicalanalysis #MSFT
27 MAR 2014:
Friends,
As you may know by now (see my prior Forex, stocks and index lessons on Wolfe Waves pattern trading), reversals at Point-5' ("five-prime") are much more common than reversals at Point-5 when dealing with the Wolfe Waves pattern ("WW").
Here is the most recent technical comment on this pattern as price carves out a top at Point-5':
-
In this particular case, things are not different.
At this point, we are witnessing a probable start of price reversal, as the value of MSFT is softening in the direction of our predictive analysis and forecast level of TG-Low = 29.23, defined last January 2014 - Note that the predictive analysis and forecasting are generated independent of the pattern, but I went ahead and covered a much more elaborated analysis of the pattern in its own pricing context after I noticed it when running my forecasting system.
For the WW novice, the price field might appear burdened and confusing with lines. However, a carefully drawn WW pattern should see Points 1-3-5 and Points 2-4 generate their own lines, as well as a 2-4 Line projection off of Point-3 to produce a 3-5' Line, and the all too important 1-4 Target Line, which is the line of interest, since in this particular example, we would seek to enter a short position at 5' and take profit once price touches that 1-4 Profit Line.
Until price action generates further idea or triggers more technical commentary, I will keep watching and expect price to further decompensate at these levels.
Friends,
As you may know by now (see my prior Forex, stocks and index lessons on Wolfe Waves pattern trading), reversals at Point-5' ("five-prime") are much more common than reversals at Point-5 when dealing with the Wolfe Waves pattern ("WW").
Here is the most recent technical comment on this pattern as price carves out a top at Point-5':
-
In this particular case, things are not different.
At this point, we are witnessing a probable start of price reversal, as the value of MSFT is softening in the direction of our predictive analysis and forecast level of TG-Low = 29.23, defined last January 2014 - Note that the predictive analysis and forecasting are generated independent of the pattern, but I went ahead and covered a much more elaborated analysis of the pattern in its own pricing context after I noticed it when running my forecasting system.
For the WW novice, the price field might appear burdened and confusing with lines. However, a carefully drawn WW pattern should see Points 1-3-5 and Points 2-4 generate their own lines, as well as a 2-4 Line projection off of Point-3 to produce a 3-5' Line, and the all too important 1-4 Target Line, which is the line of interest, since in this particular example, we would seek to enter a short position at 5' and take profit once price touches that 1-4 Profit Line.
Until price action generates further idea or triggers more technical commentary, I will keep watching and expect price to further decompensate at these levels.