Loading .../es “best fit”
I’m favoring the ALT in red, but in case I’m wrong … heads up.
Yesterday I said MY tools for weekly and monthly show bear moves directly ahead.
As of today, that now extends to the daily also.
More on this chart from ET here ..
http://studyofcycles.blogspot.com/2024/01/daily-and-alternate.html
YMMV and NTA.
So crash helmet on ?
🙂
Nope.
Crashes are always third waves.
After any kind of top, you first need a first wave down, and then on the rebound, a failure to make a new high. Then the crash, as everyone repositions from long to short at once. And there are no buyers.
Usually they show up on FBOs in the context of indicator pairs that fail to complete buy crossovers. MACD relative to signal line, for example.
They occur in all TFs, so the higher the time frame the bigger the move.
In a HNS setting the crash comes after the RS.
So, the barf bag for now and after the eventual bounce, then the crash helmet.
That’s ET’s view (in black)
Per my remarks, I’m on the red ALT count that drags it out further still. Eg
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_rvF8RQijtB_6B2YwYk2fq0flF91VISV1k2CWARt2knOJSkj3mPu1SfLCOJb6ZIZKFGCxTbon9ZRju5B-cNtsgSHf9OUAIA0gkr_aY4q7m-RnltZO0pghpu7fupAuaPqV_GDqdunF-W8CZIY7Lmp1O_Rsz_abSMiIs2mTHuHHwVFd9q3Y8vmr7yjm_4z8/s1565/indu%20lt.png
Whether we comply with an official HNS pattern or not, crashes come only after failures to make new highs.
The bigger the pattern, the larger the RS and the more time between the top and the crash wave.