I recall reading that throat top consolidation patterns have an increased likely hood to break out in the direction of the flat. . .. . Like its building up pressure under the resistance until it pops! I’m talking about the yellow triangle on this chart.
If that is true, the blue trace is scaled from a previous time when the price pressed up into a resistance level with a flat top wedge shape.
Per Eliot wave theory, we normally see a low level, mid level, and top level in any motive wave. In between each level, there should be a little pull back (at a level on a smaller time frame) between each of the bottom mid and top main levels. That observation also guides and correlates with this blue projection.
We can also see that we have entered into a harmonic pattern that has departed bullishly from the orange pattern that had been influencing us.
Depending on the success of this bullish effort, we will wait her continue our bullish departure, or have a larger gap to make up on the next bearish movement, since the support levels that the orange trace is dancing along are still significant for use… and quite a bit lower now. We have observed many times where an additional leap transforms into a continued bearish move similar to the forecast, as it crests over. Like the drummer played an extra enthusiastic note on this level.
If you are interested in following along as these moves play out… follow me… and ill post updates to this post throughout the week :)
Good Luck, God Speed, Love & Light!
If that is true, the blue trace is scaled from a previous time when the price pressed up into a resistance level with a flat top wedge shape.
Per Eliot wave theory, we normally see a low level, mid level, and top level in any motive wave. In between each level, there should be a little pull back (at a level on a smaller time frame) between each of the bottom mid and top main levels. That observation also guides and correlates with this blue projection.
We can also see that we have entered into a harmonic pattern that has departed bullishly from the orange pattern that had been influencing us.
Depending on the success of this bullish effort, we will wait her continue our bullish departure, or have a larger gap to make up on the next bearish movement, since the support levels that the orange trace is dancing along are still significant for use… and quite a bit lower now. We have observed many times where an additional leap transforms into a continued bearish move similar to the forecast, as it crests over. Like the drummer played an extra enthusiastic note on this level.
If you are interested in following along as these moves play out… follow me… and ill post updates to this post throughout the week :)
Good Luck, God Speed, Love & Light!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.