Crude

Crude continued its correction today. I'm beginning to think I'm right, in that this is indeed a 4 wave. It appears to have finished off a cut and dry expanded flat.

I will be looking for price to move higher from here. Still thinking we find our way up to the 38.2% around 63.50.




Here is some intra-day action on my trading chart (144T). We had a nice little corrective ABC from the swift down move after weekly numbers.

Notice the B wave retracement to the 70.7%. The projection of the A leg, measured from B, finishes exactly at the 141.4%. 70.7 is the reciprocal of 141.4, which I might add, is a very harmonic combination.

There is another example where the retrace was 88.6% and the final destination of price ended at the 112.8% fib projection. Again, a case where reciprocals play out.

This is not an unusual occurrence. This happens very frequently. I am always interested in the precise retracement ratio, so I am aware of what price projection I should be looking for.

The retracement ratio clues you in to whether you have a arithmetic, geometric or harmonic relationship working. That's a topic for another discussion though.