...well today's price action went too low for a normal wave 4 but not low enough for a normal wave 2, so that means a change of plans for what I was thinking. While the price action appears impulsive on the low level charts, price isn't moving high enough to give a perfect green light to a strong impulsive structure. Instead, an ED would fit nicely based on where we are in this wave structure off of the Feb low.
Here is my plan (assuming we move to a new high tomorrow morning):
- take a 1/4 short position on a touch of 1185
- add 1/4 position on a touch of 1165
- add the remaining 1/2 position on the next hourly pullback defined as RSI(5) hitting 70
I'll use a trailing stop on my positions based on hourly / daily pivots with an initial target of 1115/1120.
If we aren't in an ED, then the market should move substantially higher without ever giving me a sell signal.
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