Theory:
In the previous wave structure linked to this idea, I said that maybe the purple wave retraced 38.2%, and the yellow wave retraced 50%, so maybe the pink wave would retrace to the next fib level of 61.8%, but now I adjusted it to where that pattern didn't hold, and it actually was more consistent with the yellow and purple waves at between 50% and 38.2% retraces.
Prediction (shown as the white wave):
The red dashed line represents a strong channel of resistance that the price must break through, and assuming that $300 continues to offer strong resistance, the white wave A point would be a likely area for a top to the next wave. B would then bounce off the new support line shown as a green dashed line, or go slightly below it. Finally, the point C on the white wave retraces between 38.2% and 50% like the previous 3 waves.
Timing:
A falls on next week's weekly futures settlement on OKCoin.com. B would be the following Monday giving time for a bleed over the weekend. C is the day before the next week's settlement as it retraced.
Indicators:
Volume profile shows heavy support below current price. MACD shows momentum continues to swing upward.
In the previous wave structure linked to this idea, I said that maybe the purple wave retraced 38.2%, and the yellow wave retraced 50%, so maybe the pink wave would retrace to the next fib level of 61.8%, but now I adjusted it to where that pattern didn't hold, and it actually was more consistent with the yellow and purple waves at between 50% and 38.2% retraces.
Prediction (shown as the white wave):
The red dashed line represents a strong channel of resistance that the price must break through, and assuming that $300 continues to offer strong resistance, the white wave A point would be a likely area for a top to the next wave. B would then bounce off the new support line shown as a green dashed line, or go slightly below it. Finally, the point C on the white wave retraces between 38.2% and 50% like the previous 3 waves.
Timing:
A falls on next week's weekly futures settlement on OKCoin.com. B would be the following Monday giving time for a bleed over the weekend. C is the day before the next week's settlement as it retraced.
Indicators:
Volume profile shows heavy support below current price. MACD shows momentum continues to swing upward.
