Retracement rules would say long when a whole candle closed over 75%, but considering that we have 9777 Reistence just up ahead i am sort of reluctant.
Perhaps the best thing to do would be to find another active wave above 9777 and wait for a long signal there.
Its just difficult to trade around these levels, where nobody knows yet if we have a TOP and a reversal or a rally resumption.
Either way… we need to wait for now.
Regards,
E. Lang
PS: The currently active wave is bearish or a downwards wave, and since the price retraced to 75% of it and closed over 75% we call the active wave a corrective one AND a corrective wave is always in the OPPOSITE direction of the main trend. So if it is facing down, then the main trend should be up.
Once you have that information you check your DAILY RSI and other indicators to confirm if the trend is up (RSI > 50), if it is, then this system says you are ment to long, but like i said before, im reluctant considering 9777.
UPDATE:
You will notice on Chart 4 that i have drawn a new active wave, for us to continue holding our long this active wave needs to be defined as an upwards impulsive, which means its retracement should reach 38.2 - 61.8 and then pop back up in an impulse all in all forming One impulse upwards, one correction downwards and one more impulse upwards.
We wait and see.