Let’s start analyzing, today market opened at the 5 of the 5 min Wolve Wave, which is bullish. Target line for this is very steep reaching that line is almost impossible, but we can expect bullishness in the price because of this pattern formation. As expected market is moving up while moving up we got another Wolve Wave on 1 min time frame which is bearish in nature, and 5 of this Wolve Wave is exactly below the resistance level of the 2-4 of the 5 min time frame bullish Wolve Wave. As expected price started moving down, but the larger time frame is bullish in nature here comes the contradiction, those who are waiting for the opportunity to go long took advantage of this down move to enter in to the markets as in larger time frame market is showing bullishness. That is why after falling to some level price started consolidating with good volumes and we can observe that when ever price is falling down to new lows it is bouncing back indicating evidence for demand, and the spreads of the candles are low in 1 min Time frame, which is indicating the bulls are entering into the market. As the demand increased price started moving up with very less effort and broken the resistance Trend line
When resistance line is broken, voila big volume and spread bar just immediate to the break out bar showing increased demand, just watch out the bull run after that. We reached the resistance line of the expanding triangle, which I have posted yesterday price moved above it but no volume at the breakout, and after that also unable to see big volumes and spreads, indicating some consolidation of the price and we can clearly see the Wolve Wave in 15 min time frame. Bearish wolfe wave and now we are at sweet zone of that Wolve Wave. The bullish Wolve Wave formed on the 3-4 of the Wolve Wave in 15 min time frame, so till now we have traded the 4 - 5 wave of 15 min bearish Wolve Wave. Now we know the reason for smaller spreads at the resistance level of expanding triangle, supply is clearly evident and wolfs are on prowl supporting the bears, and the setup is very clear to us, so we don’t get killed neither by bears nor wolfs but we trade the trend and which direction we need to take and ply the game. We just trade the trend, watch and enjoy the big fall of 100 points in just 1 hour.
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