DislikedMr Pip I have a question on price action. In the screenshot I've attached you see a nice burst of momentum which I put a cyan line next to. However then you see that the move was retraced back almost 100% however did not close beneath the start of that momentum leg. How would you take this? I would think that you would not want to see strength retraced like that and any retracement that doesn't go past 50% of the momentum leg should still be taken as bullish, right? Or can we also take this as bullish because bears did not close underneath the start...Ignored
It should extend further downward, and you have a NSH, a HL and then a NSH... the retrace would then be in line with expectation (difficult to tell without more of the chart) as we can not see the prevoius momentum projection and depth..
But in my eyes, the Cyan line shoudl be extended downwards to where the clear Low is, not just to where the succession of bullish candles start...
Also if you look to where the vertical is on the crosshair to the left of the chart... if you take the retrace, and do a 1:1, the second retrace to the right of the chart is pretty much a perfect 1:1 harmonic...