|'Potential' Diagonal in the ES 2-Hour Futures|
So far, we have (v) less than (iii), (iii) less than (i), (iv) less than (ii), and (iv) overlaps (i). The Fibonacci ruler shows that wave (v) is currently less than wave (iii). Further, price has made the correct time signature for a diagonal in the futures, in that (v) takes less time than (iii), (iii) takes less time than (i), and (iv) takes less time than (ii). If prices trade below wave (iv) before it again trades above wave (v), a diagonal will have formed properly, and will likely complete properly.
There is 'some' evidence of downward overlap in that the 'a' wave of (v) has been overlapped, but, so far, waves (iii) and (i) have not been overlapped. The more overlaps there are - even in the overnight - the greater the potential for the diagonal to complete properly.
At this point, a further 'expansion' of the diagonal would not be allowed, such as tilting the upper trend line further higher, because that would imply that wave (i) or wave (iii) is not on the upper diagonal trend line, and wave (v) would become longer in time than wave (iii) - which is not good form.
Trading above wave (v) before trading below wave (iv) would imply that an impulse, higher, is forming instead of the diagonal completing, as it should.