When you trade the strongest part of the rally in subwave C of wave 3 up you main navigator is extension of subwave A of wave 3. Subwave C of wave 3 normally tops at 176.4%, 223.6% or 123.6% extension of subwave A of wave 3.
However you can not sit and wait until the rally finds its ultimate top. You want to be able to make short term trades in the process. And this is when the very same extension of subwave A of 3 comes in handy.
On the daily chart of a gold miner FNV below you can see that subwave C of wave 3 found its top at 176.4% extension of subwave A of wave 3.
But I highlighted with red arrows other extensions of subwave A that could help to pinpoint temporary tops. Particularly 100%, 123.6% and 150% extensions produced nice pullbacks.
What is even more fascinating is that every pullback off a temporary top found support at the previous extension.
The first pullback started off 100% extension and dropped to 76.4% extension of subwave A of wave 3 up.
The second pullback started off 123.6% extension and dropped to 100% extension of subwave A of wave 3 up.
The third pullback started off 150.0% extension and dropped to 123.6% extension of subwave A of wave 3 up.
Finally, subwave C of wave 3 topped at 176.4% extension and produced a bigger pullback that dropped to 123.6% extension of subwave A of wave 3 up.
Wave 2 of the Five Wave Up fractal shall never violate the starting point of the Five Wave Up fractal, its lowest from which wave A of 1 started.
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