In this video I explain how the simplest a-b-c fractal lets traders make accurate forecast about high probability reversal levels of both, trending and corrective price moves.
In my previous video: “Live Trading Room: ES mini goes to 3,100 and beyond” I explained how to find clusters of projections that may stop the rally. I came up with two numbers, 3,100 and 3,130. Both worked as resistance and after testing those levels ES produced corrective waves.
New Youtube video: "How to forecast and trade ES mini futures using a simple a-b-c micro fractal"
In this video I show potential path for a corrective wave ( iv ) down.
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How to use a simple a-b-c fractal to find resistance levels for reversal of a strong rally in subwave ( c ) of wave ( iii ) up
To nail high probability reversal levels for the wave ( c ) of ( iii ) I focused on a micro a-b-c fractal of the final wave v of ( c ) of ( iii ). I used two tools. First, extensions of subwave a of v. And, second, I count micro five waves inside the subwave c of v. When the structure got completed and the price almost tagged 223.6% extension I added up trend line to confirm completion of the top with a breakdown under that trendline.
Micro structure of subwave ( a ) of wave ( iv ) down
How to use the same simple a-b-c fractal to forecast and trade a corrective wave ( iv ) down
Now I am using the very same principle to navigate my subscribers through that corrective stage in the market, wave ( iv ) down. A corrective wave ( iv ) down is subdivided into three subwaves, ( a ) down, ( b ) up and ( c ) down. The first leg down in subwave ( a ) was structured as another micro a-b-c.
Very often subwave ( b ) follows the same a-b-c fractal. Sometimes it gets shaped as a combination of several a-b-c. In this particular case subwave ( b ) up in ES mini chose to follow a triangle structure. As you can see below, a triangle is a flat consolidation where five subwaves labelled as -a-b-c-d-e- keep bouncing in between of two converging trend lines. When the final subwave -e gets completed price starts the final subwave ( c ) of the corrective wave ( iv ) .