This is the chart I normally create for myself in weekend to prepare for next week (especially for this and next week where direction will be decided).
See that "4" in the last wave. Fib system is saying that QQQ is not likely to go above 459 if we are indeed in wave 4 (wave 4 usally bounce less than 38.2% of wave 3), followed by a wave 5 to conclude the wave C (in Elliot theory, wave C consist of a small 12345 waves)
So, my trading plan is:
- I am wating to see if QQQ can close strong with good volume above 459 in these first 2-3 days of the week If this happens, it tells me that my assumption of wave C going to 440 or 400 is not accurate, and it is likely the correction is over. In this case, my plan is to buy high at above 460. but I would put a stop loss at 455 in case I got tricked by MM in this fake breakout.
- Otherwise, I will wait for QQQ to settle and get in it around 440.
- Note, this is not day trading, but rather, to find a good entry point for the percentage of asset I plan to add to stocks during this correction cycle
