Hi Sive,
I have a question in regards of S&P. On daily chart I see a RRT formed. Also 2 butterflies 127.2 ext. from the lower one (X=1465.38) already hit. In combination with RRT this could be very powerful down move! My question is-is it permissible to use lower X point for btfly, as oppose to "orthodox " X point(1474.36) in which case 127.2 sell point would be slightly higher?! Please see the screenshot attached!
Thank you for your time!
Hi Venelin,
yes, you can use this higher point as Butterfly major X-A swing, but be careful, since we have greater AB=CD in progress, and X-A is BC leg.
In general, I agree with you, that some big fall could happen in nearest time - take a look at NASDAQ - it is forming H&S and this is clear divergence between indexes. It never leads to something good. So, US stock market now stands at crucial point - we either will see failure H&S on NASDAQ and challenge of all times highs, or this will be really big fall. I think that former is more probable.
Hi Sive, Since July when EURUSD hit 1.20411, I have been trading a 3-Drive-Buy on the Weekly time frame, which had a target of 1.3486. which has now been met. Now, I will be watching for signs of a B&B Sell on Monthly. Please see attached files. I hope you will comment on this plan in case I have it wrong.
Hi buddy,
excellent trade, although I do not treat this as 3-Drive, but market is so complex and variable that it could appar to be as you've said.
It is very difficult to call monthly price action as B&B. Mostly due poor thrust down and market has passed K-resistance area already. This is not very favorable for B&B's. Besides, it has too many closes above 3x3. Only if it will fail right here, around 50%, we'll see...
Unrelated but I think we have confirmed B&B "Sell" on the Daily TF for GBP/USD. Correct me if I am wrong but we have now 3 periods on the daily TF for retracement and market has hit minor 3/8 resistance + WPR1. Yesterday's daily candle has pushed us above the 3x3 which is needed in order for B&B to be confirmed.
View attachment 8219
yes and if u reduce the time frame to 30 min there's a butterfly sell, i guess... but i'm affraid to jump in before the uk news tomorrow.
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Excellent discussion , guys. That are my thoughts either, you can take a look at today's update. But probably we will proceed to 1.5880-1.5890 before retracement will start.
