I agree. though I'm not
a big "volume" guy, others think volume is critical. but when I watch volume as big plunges go down, I see small volume, medium volume, it isnt always the holy grail of price action.Ive seen big jumps on low volume too.So,I've realized the more important clue for me is the target price. However it gets there.
In any case, so the past few days is a good example. as the rally was developing and it was looking to target the 23 area, and starting from the 21 Low pivot, it was just simple math to see the 50% Fib for support zone to hold around 22, and thats exactly what it did today. Needs to keep holding next week as well. The Fib zone is 22.30(area)-22.00-21.70(area), so I'll watch this whole area to hold as a support shoulder. There are also patterns like the 1 dollar moves and 2 dollar waves. so if we see resistance here at 22.50 ,I could see a 1 dollar wave down to the target 21.50 area.
and all this without even thinking about volume.
Maybe breakout moves do need good volume.
The math projection targets though, are just part of the formula. the kind of thing computers look at.
So now, we saw a 2 dollar rally from 21 to 23. and the pullback to 22. IF the Elliott wave pattern happens here to develop a greater rally, the 2 dollar first wave (1), ought to see a Fib math target to finish the rally around 26. Ive charted other patterns that have been waiting to finish at 25 area. Its all just something interesting to look at .
But this week developed in a way that made me suggest the main point to watch now was for support to hold pullback around 22 area, and this is exactly what it did. so far so good ,following the math track pattern.
For next week, the same target support zone to hold (22.35-22.00-21.70 area) and the rally target zone 23.25-23.50-23.75-24.00-24.10- to 24.50 maybe? but the older waves in the larger picture want to target 25.
