I was able to spot a few key rules for why this might play out the way it shows. Starting from the high on March 2018 we can begin to line up our WXY pattern. Within that WXY Corrective waves, you can find the ABC correctives. I'll leave you to interpret how you see those but I left them out to make the chart look cleaner.
- If you look at Fibonacci drawn from the High in March 2018 (0) to the Low in August 2018 (W) you can see that (X) has retraced to the .618. (You will have to place this fibs on your own as well. I have left it out to keep the chart clean.)
- Using the Fibs Extension from (0) to (W) to (X) you can hope that price will hit the .618 retracement and that will complete the (A) wave for the (Y) correction.
- The (Y) wave would be finished up at the purple resistance line. This is a resistance that has been tested for 2 decades. I've also used the distance measured from the first (0) to (W) wave to measure the (Y) wave.
PS: I'm still very new to this so I know my terminology or TA might be wonky but I hope I get some constructive criticism as in confirming my analysis or showing me a way in which I'm wrong.
- If you look at Fibonacci drawn from the High in March 2018 (0) to the Low in August 2018 (W) you can see that (X) has retraced to the .618. (You will have to place this fibs on your own as well. I have left it out to keep the chart clean.)
- Using the Fibs Extension from (0) to (W) to (X) you can hope that price will hit the .618 retracement and that will complete the (A) wave for the (Y) correction.
- The (Y) wave would be finished up at the purple resistance line. This is a resistance that has been tested for 2 decades. I've also used the distance measured from the first (0) to (W) wave to measure the (Y) wave.
PS: I'm still very new to this so I know my terminology or TA might be wonky but I hope I get some constructive criticism as in confirming my analysis or showing me a way in which I'm wrong.