Price printed an Entry Confirmation line(horizontal fat purple) and after a morning pump tested the line finding support near the lower keltner channel and near several potential support lines. It rallied hard the next bar; closing above the ECL. An hour later it is retesting the ECL and I went long with an average price of 45.31. Price is now near an intersection of a multi-pivot line and an upsloping action/reaction line. Note RSI is just below it's 38.2 reading(it's apparent over sold level in this 233 bar frame). Price can certainly dip lower to target2 of the Bear AB=CD(red pattern) where it will find the root number of a potential Bull .618 AB=CD @44.69 and a multi-pivot line just below that it will have to contend with.
If the market has fallen out of bed and we are in for a deep correction I will certainly be stopped out of this risky setup(note the lower highs and lower lows). My stop is at the HOP level to the potential .618 AB=CD. A more conservative approach to entering this long trade would be to watch for virtually immediate support here or at 44.69 and buy a confirmed breakout of the downtrend line; at which time one would presume a major low pivot to be in place(justifying gunning for higher targets as a function of trend).
DYDD
If the market has fallen out of bed and we are in for a deep correction I will certainly be stopped out of this risky setup(note the lower highs and lower lows). My stop is at the HOP level to the potential .618 AB=CD. A more conservative approach to entering this long trade would be to watch for virtually immediate support here or at 44.69 and buy a confirmed breakout of the downtrend line; at which time one would presume a major low pivot to be in place(justifying gunning for higher targets as a function of trend).
DYDD