Five Wave Up fractal
CASE STUDIES

Case Study: Five Wave fractal on GILD Daily Chart

Price never travels in a straight line for too long, it travels in zig-zags shaped as A-B-C
Wave A is an initial Action, Wave B is a reaction to the first move, Wave C is a resolution to both preceding waves A and B
In up looking A-B-C fractal the starting point of the wave A is the main support for the whole A-B-C up fractal. Reactionery Wave B down may come back up to the lowest point of A but never should violate it
In down looking A-B-C fractal the starting point of the wave A is the main resistance for the whole A-B-C down fractal. Reactionery Wave B up may come back up to the highest point of A but never should violate it
In up looking A-B-C fractals Wave C either retests or more often makes new higher high over a high made by Wave A.
In down looking A-B-C fractals Wave C either retests or more often makes new lower low under a low made by Wave A.