Riding the Waves

• A few key items and notes here. First we didn't know when the 5th wave of this ABC correction would end. measuring the Top of Wave 1 and the end of Wave 3 gave us a clue of where the 5th Wave may end. Look at this chart and see how it nearly caught the top perfectly at the 162% level, amazing!
• Look at how well the MACD shows the formations of the waves, a very handy tool.
• Also look how well the MACD measures the momentum, look at how near the end it crossed and confirmed the upward move was losing momentum.
• Also notice that 1.3333 level is a key Fib level of the entire more, it just happened to be the 78.6% retracement of the entire move down.
• Be careful of extensions, you can see here Wave 3 extended, you could mistake this extension for the end of Wave 5, go short and you'll be way too early on the reversal.