ACB potential wave 3 up?
Elliott wave counts can be very subjective with some people's counts being completely different. I have two potential counts set up for ACB. My count I'm leaning more towards is the GREEN count.
Following the Green EW count, we see the price come just about to the pink weekly resistance line. In EW theory, wave 3 is the strongest move and known for the "gap up" movements. These gap ups generally occur to break through a resistance line. This makes since and would follow that the pice movement up to weekly resistance would be wave 1 and we are currently in a wave 2 pull back, potentially setting up for a nice wave 3 movement up to break through the weekly bearish resistance line. The green wave 3 projection coincides very well with the weekly Supply zone, potentially indicating where a pull back could occur for green wave 4.
As I said, there are always different counts; or "Alt Counts." The yellow count is just that and also has supporting indications. In favor of the yellow count is the potential of a back to back .618 retraces, which a lot of EW traders like to find and make decisions of entry points from. We can see a yellow wave 2 retrace to .618, meaning we are in yellow wave 3. There has to be 5 waves to make up yellow wave 3, which, this pullback could indicate we are in a smaller degree wave 2 retrace that is just hovering above a .618 retrace that comprises the overall yellow wave 3 movement.
End of day, if going off these counts, both support a movement upward in my opinion.
Following the Green EW count, we see the price come just about to the pink weekly resistance line. In EW theory, wave 3 is the strongest move and known for the "gap up" movements. These gap ups generally occur to break through a resistance line. This makes since and would follow that the pice movement up to weekly resistance would be wave 1 and we are currently in a wave 2 pull back, potentially setting up for a nice wave 3 movement up to break through the weekly bearish resistance line. The green wave 3 projection coincides very well with the weekly Supply zone, potentially indicating where a pull back could occur for green wave 4.
As I said, there are always different counts; or "Alt Counts." The yellow count is just that and also has supporting indications. In favor of the yellow count is the potential of a back to back .618 retraces, which a lot of EW traders like to find and make decisions of entry points from. We can see a yellow wave 2 retrace to .618, meaning we are in yellow wave 3. There has to be 5 waves to make up yellow wave 3, which, this pullback could indicate we are in a smaller degree wave 2 retrace that is just hovering above a .618 retrace that comprises the overall yellow wave 3 movement.
End of day, if going off these counts, both support a movement upward in my opinion.
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