In the comments for the last two posts, we were discussing a smaller triangle, a larger triangle, and a potential expanding diagonal downward. The smaller triangle was already valid. The larger triangle potentially became valid today, as in the ES 4-hr chart, below. So, new higher highs would be needed to confirm these triangles.
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| ES Futures - 4 Hr - Potential Larger Triangle |
The downward diagonal would be counted as below, but it needs to form a larger wave 5 than the current wave 3 shown on the ES 2-hr chart, below.
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| ES Futures - 2 Hr - Potential Expanding Diagonal |
This is an illustration of The Fourth Wave Conundrum that does occur at every degree of trend. For example, even if there is an expanding diagonal, we don't know if it will be leading or ending (to end a larger fourth wave). So, caution, calm and patience are still very much needed.
Have an excellent rest of the day & evening,
TraderJoe
wave E appears impulsive on inpsection
ReplyDeleteIf it was a 5 yesterday it was truncated but it certainly followed the MO of the other waves down. Vix holding above 20 is concerning.
ReplyDeleteAs far as I can tell, over wave Ⓓ would invalidate the potential downward diagonal and more likely signal the triangle.
ReplyDeletehttps://www.tradingview.com/x/EIFbTyx2/
TJ
SPY 5-min: in the absence of serious Smart Money sellers, someone has an amazing 'wedging' or 'pinning' algorithm. Break the wedge, reform the wedge, and on & on.
ReplyDeletehttps://www.tradingview.com/x/SyywRtx7/
TJ
ES 4-hr: the expanding diagonal option appears to be invalidated. TJ.
ReplyDeleteThx for all the work.
DeleteWelcome, thx for being a great contributor, too! TJ.
DeleteAlmost at DJIA larger wedge target of 43K.
ReplyDeleteA new post is started for the next day.
ReplyDeleteTJ