momentum

Momentum in the D1 frame is starting to tighten and is showing signs of a possible reversal. This could indicate that the current bullish correction wave is coming to an end. When the D1 frame’s momentum reversal into a downtrend is confirmed, the market may enter a bearish phase or sideways movement that may last for several days.

The H4 frame momentum is currently in oversold territory, which could open the way for the H4 frame momentum to rebound upward. In this case, we may see a few H4 candles temporarily move up or sideways to rebalance momentum.

The momentum of the H1 frame is still in the downward direction, so the price may continue to fall towards the lower support area in the short term.

wave structure

On the D1 frame, the wave structure has not changed much yet. However, with momentum narrowing and the D1 frame showing signs of reversal, this could be a warning that the upward correction is nearing its end. If this is confirmed, prices may continue to fall to complete Wave C.

On the H4 frame, we noticed that the price fell below the 5186 level. This may indicate that the correction phase is over and the market may continue to move downward. The potential target of wave C may reach the 4857 area.

Looking at H1, since H4 momentum is still in the oversold zone and closing, while H1 momentum is still in a downtrend, the price may continue to fall towards the nearby support area. Thereafter, we may see a short-lived bullish rally driven by Q4 momentum.

Therefore, the support area below can be monitored in the short term for quick buy trades (scalp buys).

An uptick in momentum in the upcoming fourth quarter will be important as it can provide excellent trading opportunities.
If H4 momentum rises into overbought territory but the price fails to break above the previous high, this may be a signal that the ABCDE correction pattern is complete. Then it might be a good opportunity to enter a wave C sell trade, especially if it matches the target liquidity area.

trading plan

Price is currently moving within the high liquidity zone (yellow zone). If the price continues to trade sideways within this area and the H4 momentum reaches overbought territory, the 5201 level will be a potential area to look for short trades.

If the price falls further, when the price retests the 5102, 5131 or 5201 areas, while the H4 momentum is in the overbought zone, these areas will also be suitable selling areas.

Sales area: 5200 – 5202
Level: 5220

TP1:5131
TP2:5102
TP3:5052

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