In this technical blog we’re going to take a quick look at the Elliott Wave charts of IYR ETF from the Group 3 , published in members area of the Elliottwave-Forecast. As our members know, we’ve been calling rally in the ETF due to impulsive bullish sequences within the cycle from the March 2020 low. We recommended members to avoid selling in any proposed pull back and keep on buying the dips in 3,7,11 swings. Recently IYR made pull back that has unfolded as Elliott Wave Zig Zag pattern which has given us good entries for the long side . In the further text we are going to explain the Elliott Wave Forecast and trading strategy.
IYR 1 Hour Elliott Wave Analysis 8.8.2021
IYR is doing pull back against the 103.17 low , unfolding as Elliott Wave Zig Zag Pattern. First leg (a) shows clear 5 waves, looking as leading diagonal. We assume that this was the first leg of the Zig Zag pull back that still needs to see another leg down. After Leading Diagonal in (a) we got clear 3 waves bounce in (b) blue, after which the price started turning lower again. For the ((ii)) target we use (a)-(b) equal legs, blue box. That area comes at 105.67-104.34 which is entry area for the buyers. As the main trend is bullish we expect buyers to appear for 3 waves bounce at least. Once bounce reaches 50 Fibs against the (b) blue high, we will make long position risk free ( put SL at BE). As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.
You can learn more about Elliott Wave Zig Zag Patterns at our Free Elliott Wave Educational Web Page.
IYR 1 Hour Elliott Wave Analysis 8.15.2021
Eventually IYR made another down toward blue box area 105.67-104.34 and found buyers as we expected. We got nice reaction from the blue box, which reached 50 fibs against the connector, so member who entered the long positions are risk free at this stage . 2 red pull back is counted completed at the 105.21 low , when we could be trading in 3 red now. We would like to see break above previous 1 red peak to confirm next leg up is in progress. If the price breaks 105.21 low, then new price structure will denied proposed count and pull back would be still in progress as 7 swings.
Keep in mind that market is dynamic and presented view could have changed in the mean time. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room. You can check most recent charts in the membership area of the site.
Elliott Wave Forecast
Source: https://elliottwave-forecast.com/trading/iyr-buying-dips-blue-box/