Foreign Welcome to another update video about Polka dots polka dots just a quick Update here not really anything changed We are still in this you could consider It a bearish flag Um where one more lower low is quite Likely there is a chance that this is Some kind of a bullish pattern but as You can see it's a very well defined Channel those slight upward sloping Channels are always a warning signal and We had that here by the way as well even Though up here the price action was more Impulsive yeah we could count that at The time as an as an impulse and it did Work out quite well we had a reversal Signal here and then we would have Had to hold this key support area here Failed and as a result of the failure Broke nearly 18 down so these key Support areas which are of relevance if They get broken then you're basically Moving into a different pattern and here This was the move from a possible Bullish pattern into a bearish one it's Always the retracements which are going To be the stress test for any Um for any bullish pattern there is Never going to be Um a reason really in my opinion to Chase green Candles there will always be The next retracement and the next Retracement will always be a stress test
For a possible bullish case anyway and If support levels hold you know then Price then you know you can enter long For example it obviously is the same Situation in a situation where it might Be worth shorting the price but it is For me and again there's so many Different strategies I'm not telling you How to do it but I like to buy the Pullbacks because in a situation here Where we had a pullback even though here It I would have been scared by this Candle so I wouldn't even have bought Here and because this candle you know This here would be a situation where you Know you're holding support you have a Trend reversal area all fine here with This red candle I I mean I didn't do an Update but when you see something like That it's unlikely that this area is Holding because it comes down with such A Such an Impulse that it is likely to Break just sort of in terms of price Action and how to read it but yeah this Support Eric didn't hold we lost the Channel moved down in my opinion this Very strong downward move was away three And we are now moving up in the fourth Wave that might be complete might not be Complete Um it could even be that this was the Way for high and we already in the Um in the fifth wave and that would sub
Depot subdivide as follows so we could Say we have here an ending diagonal for Example a wave one a wave two we're now Heading down in wave three there'll be a Four and a five of five Yep but we don't really know that yet Um it's just I think worth understanding The key pivot and decision points so I'd Rather say Wave 4 is still ongoing and That has to do with the sloppy and and Long price action that's unfolding here Um a wave four is usually long it's Usually designed to pull people out we Had a similar situation here yeah as you Can see Um this was actually very long it wasn't Really I mean it was you could count it As an Impulse but it was a lot of up and Down Um And it took also you know from here Basically 13th of October into the 7th Of November to play out this way for Before coming down in an Impulse yeah And here this sort of similar structure Is A possible way for could it be something More bullish yes it could but but but I would want to see a price get above The 50 FIP retracement for that so I Would want to see a substantial increase Above 615 which is the 50 Fibonacci Retracement of the Wave 3 because if it Gets above that level it's most likely
Not a wave 4 anymore so I find looking At this chart moving up once more Hitting the channel resistance or trend Line and I can actually I need to make That it could even be something like a This an ascending wedge which would be Even a little bit more bearish yeah it's Sort of an exhaustion pattern Um So Here yeah hitting it once more hitting The 50 flip level and then going down Certainly a possibility in the on the Other hand if we lose that trend line Here straight away I think that's the First signal we're coming down that Would be around I mean if you then also Take out the previous swing low that Would be around 5.60 next support sort Of in the 550 area and then here 530 and If we go below 530 then we've got our New low so at the moment while this Could be also something more bullish but I'm um Again it would have to be a one two Setup here as well one two but the Movements to the upside are very clear Three wave structures Especially this one here looks like a Three wave Um maybe down here you can interpret That as a five wave but it doesn't Really matter so much because Um you've got this wave structure here
That also looks like a three wave move Up so it's it's not convincing not Really bullish yet Um no reason to say the lowest in yet of Course there's a chance whenever a chart Makes a new low it has a chance to Create a new let's say bullish structure From the low from the you know from Scratch basically Um but it is not really impulsive what's Happening here and the fact that we are Still in this sort of upward sloping Channel is rather Um Yeah allows rather for a focus still to The downside for one more lower low Maybe in the in the region around five Dollars yeah that's my update about Polka dot I 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