Chart, page-2154

@W3hunter@princey37

Wow, what a shocking last couple of months. I haven't considered a single trade for quite some time...

One stock I'm keeping an eye on is RCR (I think you guys are too?). This is my take on it.
I'm sticking with a version of the 65 EMA trade setup that is slightly different than what has been discussed here (the 65/200 ema cross is still important at point 2). The main difference is that I need to see a spike up to the trend line with MACD also turning green (after an ABC correction or similar) as is shown at point 1 on the chart, the spike WITH MACD is the important part, no green MACD, no trade. From there, the price needs to re-test the 65 EMA as support with MACD turning down (red) again (around point 3). Ultimately I like to see a "double bottom" of sorts on the 65 EMA (which in reality will be a higher low).


Essentially I'm looking for concrete evidence of wave 1 of the larger 3rd wave. We can see here imo that there has been a large wave one, followed by an ABC correction back to the 65, we then saw a smaller wave 1 and now we are seeing the beginning of the small wave two after testing the trend line thats been created from the ABC. After this small wave 2 correction we will ideally see the wave 3 of wave 3. I've found by only taking trades where there is a clear wave 1 and 2 with MACD confirmation and then a trend line break for the larger wave 3, there is a larger chance of success.

It certainly reduces the number of potential trades, and in a bullish market, I would be trading more aggressively.


What about the XAO/XJO though? Looks terrible imo, major top? I want to see the market reset here for half a year to a year. Need to get on top of inflation to see good market times again, but it feels like we keep giving handouts and encouraging spending. RBA policy and government policy seem very at odds right now.

Dont see getting out of this without a major recession but I was rather young during the GFC so I'm not sure how it stacks up to that. Working in accounting and doing a business degree I certainly feel there is some rather strong headwinds coming. Lot of people out there are struggling.