The futures broke key support in the overnight session and traded down to the 801 area before reversing and rocketing higher. That is until we opened. We sold off to key support once again, buyers came in and took us higher where we reversed and sold off to key support. Buyers once again and came in and closed the session close to the highs. So far during the Asia session, price has been able to eclipse the US session high. If me manage to break the channel and stay there to the upside, then that leaves open a possibility for another push at 850. If we fall down from here, then our next wave c should kick in and give us a nice push to 780.
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Was 801 a retracement point plus do futures count when doing EW analysis?
ReplyDeletejfk - yes it was the 61.8% retracement off of the last wave high, so I guess it isn't surprising we got a bounce there. As for futures, I don't like to use futures in my EW analysis because the volume is generally so light that it has little EW significance (EW requires a lot of volume to work). However, I do use futures sometimes when I'm looking at a possible failed wave situation in the cash market but see a completed wave (new high or new low) in the futures market.
ReplyDeleteRich, do you subscribe to Dr. Robert McHugh site?
ReplyDeletekidflare - no i do not, but I have read his work in the past, and it was interesting, but I never traded any of his ideas.
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