Wednesday, August 17, 2022

Gap Down - Lower Low Day

Overnight the ES futures were lower. Eventually they made a 1.618 extension, then upwardly overlapped the first wave down, nullifying the fourth wave of a potential impulse count down. The chart of the ES 4-Hr futures is below. Price got down to the mid-line today.


Shown on the chart is the time taken by the fifth wave to form IF it has ended where shown (there IS a probability of a triangle here, so take it with a grain of salt). Thus, we show the time allotted if the down wave is to break the (ii)-to-(iv) trend line in less time.

Be very cautious in the currently whippy conditions. Have an excellent start to the evening.

TraderJoe

6 comments:

  1. potential count if we consider a triangle. The e wave avoids the overlap problem just by a hair.

    https://www.mediafire.com/view/1nj7s44r5xxdath/Triangle.jpg/file

    ReplyDelete
    Replies
    1. Not very likely due to degree violation: your claimed smaller degree 'a' of triangle is much, much larger than the claimed larger degree wave 2; the prior higher degree wave in the same direction. TJ.

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  2. I forgot to footnote the chart. It's 30min /ES chart.

    ReplyDelete
  3. ES 30-min: as far as I can tell, this is the only way to avoid degree problems in a down count at the moment. Waiting for the sideways mush (possibly a triangle) to end.

    https://www.tradingview.com/x/HRJusjOQ/

    TJ

    ReplyDelete
    Replies
    1. ES 30-min: up wave now past 'time-equality' with total down wave.

      https://www.tradingview.com/x/IuflrXGf/

      TJ

      Delete