Market Analysis : Potential Wave Patterns and Risk Management Strategies

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The current chart analysis indicates that the market does not appear bearish. From the identified red arrow, it seems we are observing a three-wave (ABC) structure or potentially a more complex pattern. Notably, wave B has been characterized as diametric and is now complete.

Currently, we find ourselves in a Local Swing High (LSH) range, where a price drop is anticipated. However, a crucial point to note is that if a daily candle closes above the specified invalidation level, this analysis will be rendered invalid.

Effective risk management is essential in this scenario, emphasizing the importance of setting stop-loss orders and maintaining proper capital management to mitigate potential losses.

Conclusion :

While the market structure suggests a possible downward movement, the analysis hinges on critical resistance levels.

Advice :

Stay alert to price actions near the LSH range, and ensure robust risk management practices are in place. Setting stop-loss orders will help protect against unexpected market movements. Feel free to comment with any questions or for further clarification on the analysis. Thank you!