Looking for confirmation of a 5 wave decline
The very short term XAO has completed a 3 wave decline and as described in the last post, a decline to around 4690 would most likely occur. The XAO hit 4695, before climbing up to 4726 today. The expectation is for more declines to complete wave '3' circle which doesn't appear complete. The MACD price oscillator (not shown) has plenty of room to move on the downside and no divergence is evident as yet.
Should the decline not occur, then channel lines (as shown) are needed to define the upside area that the XAO can be allows to operate within. As discussed in previous posts, breaking the upside channel line will bring into doubt the count as well as potential stops that could be used to reduce risk.