In our analysis we refer to the Elliott Wave Theory, this method of technical analysis allows us to anticipate market movements by counting price waves, which is why numbers and letters are on the charts.
They are the heart of our analysis. These are calculated by us and added to the chart for you in color. When a range is set by us, we assume that the given course will change direction within this box. If a price dips from top to bottom in one of the target zones we have previously set, we have the chance to participate in an upward movement (long position). In this case, the entry for a position should be set at the upper edge of the previously defined trend reversal area. The coordinates for this can always be seen on the side of the area.
However, this works both ways. If the respective price moves from bottom to top in a previously defined target area, we can participate in a downward movement (short position). Here, the entrance is to be set at the lower edge of the target zone.
Typically we set our stop loss 1% below the reversal area we defined, however more precise coordinates will be discussed for you in our ongoing analysis. The take profit, the point at which we want to realize our profits, is set at the upper or lower edge of the subsequent trend reversal area.
Since we are moving in different time frames in the analyses, our target zones are classified according to the traffic light colors for the most precise risk assessment possible.
Green Zone = High probabilities
Orange Zone = Moderate probabilities
Red Zone = Chancy probabilities
The color coding should help you to classify in which target zones you can risk more or less of your capital. A target zone that we have defined in gray only serves to realize profits on an existing position. We do not want to use this target area for a new entry.
A technical analysis is always based on the assessment of probabilities. Solid arrows signal our primary view of the market. Dashed arrows indicate our alternative scenario.
