Light crude clc1

[dumbass]

hi rod , oil is currently in an extended fifth wave and yet again an ending diagonal is printing.

extended fifth waves are special situations which can prove to be very lucrative.

The underlying market forces reach an extreme and then prices reverse very rapidly in the other direction.

We are very close to a short with very heavy fib action around 95 unlikely to be breached.

this is one to leave alone as target is around low 80s and worth a large position as even at a market sell we risk only say a dollar.

unfortunately im having a few problems uploading images so will post a chart if i can.

elliot wave takes a little bit of study , i think you need to have a good pattern recognition type brain and there is a strong fib component.

but to be honest im not the smartest cookie so anyone can do it. if you are interested in the best way i will give you recommendations for texts and websites.

[dumbass]

[roddy]

Hi DA
Is the lowest risk entry when the fifth wave touches the top line before going short.on my platform i can trade USOIL which seems to be the same chart as
light crude
i notice on the daily to coincide with the ending diagonal that there is a gartley of sorts
B is just under .618 however c is at the same level as A and D just under .786 !
i would be interested in getting some more understanding of Elliot wave so any links or websites is good

[roddy]

Attachment 3684 here is gartley

[dumbass]

hi rod, i havent pulled the trigger yet , one thing with ending diagonals they have a tendancy to undershoot or overshoot the upper trendline on the fifth wave.
it looks text book so far with 5 waves made up corrective 3 wave patterns but as its a terminal pattern can sometimes see a blowoff rally.
i notice currently we have reversed on the trendline but care is still warranted.

the way i play a reversal is wait for a 5 wave fall and a 3 wave correction on m1. nothing as yet

[roddy]

Hi DA
As a confirmation do you ever look for divergence the same as Butterfly's etc or is the 5 wave fall and 3 wave correction better!
i went through the gartley thread last night it was very interesting, arguably some of the best stuff on the web regarding trading the patterns

[dumbass]

i think divergence is helpfull that you are on the right track but not really precise.

personally i like the upper trendline being broken then tested from
the underside and a head and shoulders pattern .

i spent a bit of time studying candlesticks which are good too , say a bearish engulfing or an evening star.

so bit of everything really seems to increase your chances of success.

still the most powerfull however is 5 down three up . your typical wave 2 retraces 50 - 61.8 of wave 1 and can not retrace more than 100 %, so on an m1 your stops can be ridiculously tight allowing you to place bigger positions which is cool.

yeah arco is still the best trader i have ever seen, really miss his posts, hopefully he's lurking in the shadows and may post again from time to time.

[dumbass]

looks promising 5 waves down with good fib relationship , 3 wave correction at 61.8 % retracement

short from 95.80 with stop at 96.20

[dumbass]

not that promising , loss of 40 c . 200 day ma taken out looks like its got legs will watch for now

looking at 61.8 retracement now.

markets are completely paralysed at the moment, just in waiting mode.

[dumbass]

great example of an ending diagonal with the final wave itself an ending diagonal.

short from 97.15 .