Learning corrective patterns can not only save you from allot of destruction of your trading account but it can also make you allot of money when you can trust what you see.
The chart above illustrates a flat correction where the correct signature is for a deep w.(b) followed by a five wave w.(c). Typically w.(c) = 1.382 w.(a) or w(c) = w.(a). I've also used reverse fibs to show the levels of confluence.
As an exercise, one might want to draw in the retracement fib levels to see where levels of agreement where. If I recall 13446 was a significant level on the 240 min chart level.
Remember, corrective patterns are always fully retraced provided you an opportunity to capture significant gains!
Best of Trading
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Fair Disclosure Notice: I do not have a position in any of the aforementioned futures markets or securities related to this article.
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