Short-term Sell Setup

Sell after corrective pull back, simply to catch wave 3 or c decline

코멘트:

could be a double zigzag correction

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could not rule out a larger flat correction

코멘트:

there is a bearish count right now, but we need to see a relatively strong decline to prove wave 3 is under way

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could be more complex than I thought

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If this is an ending diagonal, we should see price re-test sub wave (3) high (usually higher than wave (3) but should not breach the origin of blue wave 1 or a) then a sharp decline fall below the end of sub wave (4).

Since the reversal after ending diagonal usually very quick and sharp, it could be difficult to enter the trade manually, we could probably place a stop sell order just 1 point below the end of wave (4) (only if we see the wave (5) rally first).

코멘트:

The short-term bearish target would be re-test the end of blue wave 1 or a at 7391

코멘트:

The starting point of the blue wave 1 has been broken, we need to figure out something else

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maybe this is how it ends

코멘트:

A close below 7391 (end of blue wave {iv}) would indicate diagonal is complete.

코멘트:

7604 should act as the short-term key resistance, break above this level would eliminate the immediate bearish potential. In other words, if the diagonal count is correct, we will be likely to see an impulsive decline to follow. To keep the impulsive assumption alive, wave 4 should not overlap with wave 1.

코멘트:

could be another leg down to complete the initial 5 waves sequence

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The alter count may turn out to be a Flat

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double zigzag w-x-y where wave x could be zigzag or triangle

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Flat is less likely to happen

코멘트:

more bearish count in blue
an expanding leading diagonal to start the blue wave {iii}?

코멘트:

Short-term count could be:
Blue {i}-{ii} followed by pink (i)-(ii);
Grey {i}-{ii};
Grey {i}-(a)/{ii}

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another solid close below yesterday's low of 6534 would suggest wave iii of (iii) is likely under way

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double zigzag w-x-y re-test the end of blue wave iv ? or 0.618 fib level?

코멘트:

medium term bearish count

코멘트:

other than the very bearish 1-2-{i}-{ii}-(i)-(ii) count, it is also possible to have a 1-2 followed by diagonal {i} then we could have a recovery {ii} to construct a right shoulder of a very large head&shoulder pattern

코멘트:

short0term bearish count