AMZN Short: Potential Ending Diagonal on Price-Volume Divergence
This is a short call that I had forced the last wave up to be an "ending diagonal". The reason for doing so is because of the price-volume divergence that is shown on the daily timeframe when AMZN was making a new high.
For those who are familiar with "Ending Diagonal", the imperfection will to be pointed out is"
"Wave 1" did not show clear 3 waves.
"Wave 2" is irregular.
As I admitted on the first paragraph, I did FORCE this count to show a possibility. Thus the stop loss is very tight: just above the high. The first take profit target will be where the wave 4 of a higher degree ends.
For those who are familiar with "Ending Diagonal", the imperfection will to be pointed out is"
"Wave 1" did not show clear 3 waves.
"Wave 2" is irregular.
As I admitted on the first paragraph, I did FORCE this count to show a possibility. Thus the stop loss is very tight: just above the high. The first take profit target will be where the wave 4 of a higher degree ends.