Impulsive Down Move Has Triggered

This is quick post to discuss the setups that are going on the market presently. Currently on some longer intermediate timeframe charts we are showing impulse or structures which require dissipation phases to complete. This means that you get a large wave and then it has to hit shore to fully unwind as it does it creates small dissipation waves to release its energy. This is the same as what occurs in markets when they make an impulsive down move. Essentially they are waves that travel in similar to moving a large quantity of water in the ocean, the waves simply do not just stop the whole process requires a pattern of energy release.

We can see in the chart below, that we are an impulsive down on the hundred and 135-minute chart and that the cycle direction tool has been showing V tops on the 60-minute chart for bounces in this downtrend so far. If this were an uptrend, on the hundred and 135-minute chart, then ideally and similarly we would be showing the cycle direction tool pegged at the 100 level and "V" reactions on the 60-minute chart on drops.

135 minute and 60 minute cycle charts

135 minute and 60 minute cycle charts

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply