Foreign Things have turned red overnight and It's um good to see that because it is Basically doing exactly what we said in The last video yesterday evening before Going to bed I made another video about Chili's Um after I made one yesterday morning It's obviously one of the coins which at Least shows some good volatility at the Moment Um And We do have currently the situation that It has played out as a textbook here So with five waves up here off the low Which was the buy area for anybody who Wanted to Obviously I'm never telling you to buy Or not you know Um This all depends on if you like to buy Or not in these areas it's all your own Decision but these are the areas where I Believe that the price is turning around So It did that we had our first one two set Up here Moved up into wave three then the way Forward I told you this could really be A way for given as it's A triangle okay and then the wave five Reached our Target as well there were Two Targets that we talked about two
Possible targets that you normally use To calculate Um the end of a wave five So we measure that we took the length of The wave one And you add it to the end of The Wave 4 Which was here the triangle and then we Had two Targets just to lift it up a bit To the end here yeah Um and we had the one to one ratio that Was around 25.6 cents and the next one Was around 1.618 extension at around 27 And a half so it reached exactly the Extended Target And I told you then that um it's pretty Much over well it was overboard but also Exhausted and that we will see a Reversal most like the inner Wave 2 as Soon as we break the trend line that's Why I gave you the trend line this is Happening and yesterday in the video I Think it was really when I when we were Still in the Triangle here Really interesting what developed since Then Um and we talked about this being a Possible A b correction yeah and that the C wave Was still following and then I think we Had yesterday and the video already done The one too And the Wave 3 was next and the Situation here the strong sell-off Actually confirms The Wave 3 in that it
Is so strong a Wave 3 normally is the Strongest wave then away four up Sideways overnight here into the morning UK time and now the fifth wave down Looks really good looks like a textbook Five wave down Doesn't mean it goes up straight away no But it means I just um Think anywhere in here it will reverse But we can also specify the targets a Little bit closer Obviously no guarantee that this support Area is holding but it should yeah it Should like this one did hold as well It's a very similar pattern can you Actually see that this Wave 2 and this Wave 2 looks very similar this moves Down a little bit steeper but that's Probably because the Run was a bit Longer as well Um So and and here it was obviously Massively oversold after the ninth of November so it has some space to Rally Then maybe didn't correct that much but He is coming down quite strongly at the Moment so we'll see but at the moment It's all looking good and all going According to the plan Um what we need to do now We need to look at the key support Levels in this yellow box and cut the Reversal to the upside already starting So key support in this box 78.6 flip
Level 19.6 and not so 19.9 cents it Shouldn't go below that if it does it's Probably not going to work out as a Bullish wave pattern The 61.8 percent whip level at 21.5 Cents it would be good to get there Um it doesn't need to but it would be Good because it is one of the key Fibonacci support levels in this yellow Box and finishing the wave five here in The middle of nowhere is normally not What I would expect And I would at least expect it to find Some support at a um Yeah fips of support level however it Has found support at the previous Wave 4 Which is another way of um yeah or Something else that cryptos often like To do or that they like to do in a wave 2 to find support at the previous wave Four happens often as well so that's why I already added something to my long Position after taking profit C at 26.3 Cents Um on Friday So I made everybody on the telegram and Discord aware as well and Um yeah we've already broken through the 50 FIB level at 22.7 cents now there's a few ways how we Can calculate a key Target for the end Of this so these were the support levels Fibonacci retracements where we're most Likely going to turn around we can
Specify targets a bit closer And then we look for the length of the Wave a and we add it to the end of the B Wave and then we look at the 1.618 Extension it will actually take us down To 20.1 cents so it's one way one target So when you get to that level Um you know pay attention Another way is we take the length of the Wave one And we add it to the end of the wave Four and then also we take the 1.618 extension and here the one-to-one Ratio was already reached no not quite 21.7 cents so that is close to that 61.8 Percent retracement so um Yeah it could really get they would like To see it drop a little bit lower as I Said yeah Um and the other Target would be the 1.618 extension 20.8 cents so there's Various viable targets they're all in This box therefore what I'm doing I'm Splitting my buy orders into this box in A way that I showed you before just Trying to find here the um just trying To function the triangle there it is In a way that we say Okay buying a Little up there and then the closer we Get to Q support adding to the position Closer to a stop loss I would personally That's only my own decision Um Set the stop loss below the most likely
Invalidation point it is not officially In validation if we drop out of the box To the downside this could still become A deeper wave too but this is um where I Would usually set the stop loss below The yellow box the Recently I started to Give trades a bit more space So um Of these positions I would probably set Some stop losses below the yellow box And some below this wave too because Really only when it drops below the Beginning of the yellow wave one which Was here at 17.86 Cents Only then it really gets Invalidated so in the crypto space in The current environment Um I'm rather using smaller positions to Minimize risk that way but giving the Trades a bit more space because you get Otherwise very often shaken out of your Stop losses yeah um with fast weeks Which then reverse quickly into the Other direction things like that Okay that's my update about cities hope You like the update if you did please Hit the like button leave a comment and Subscribe and if you really like the Content then please check out the Channel membership thanks a lot for Watching bye Foreign