Longer in Price, Waiting on Time

The new up wave in the ES 4-hr chart is now longer in price than the potential wave ii. Price is shown by the Fibonacci ruler as exceeding 100% x ii in the chart below.

Both waves (ii and iv) have ten (10) candles up, so we are waiting to see if the pattern becomes longer in time, as well. If so, then the question becomes, "will the pattern hold the high of wave ii?"

And that is truly a difficult question to answer. There are those who will say the downward pattern is corrective - and to a large extent they are correct. It is made up of three-wave sequences. But, this is why we say diagonals (and their cousins - triangles) are patterns which 'must' prove themselves in every detail.

If price take out the high of Minor B by only a "smidge", then perhaps Minor B is extending just a bit to become a triple zigzag instead of a double. Because there are readily available alternates, we remain flexible, patient and calm. However, if the high of wave ii does indeed hold, then it is possible a fifth wave, v, might make a 1.27 - 1.62 x wave iii in the downward direction.

Let's see how it goes. Have a good start to the evening.

TraderJoe