source avatarTrader Steve

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$SOL just swept below a four-day box and reclaimed most of the drop within hours. I lean long, but not here. I'm waiting for a pullback into the halfway retrace of the first bounce. The bigger trend is still down, so chasing this is the wrong trade. Context: five weeks of lower highs and lower lows, then a capitulation-style flush through the box floor. What lines up at the waiting zone: - Selling volume on the flush was about half of the prior climax bar. Sellers tired. - The decline from the last major high counts as a completed five-wave move. - A 1h higher low, the 50-61.8% retrace of the first leg, and the 12h lower Bollinger band stack in one area. Three separate reads pointing at one spot is why it matters. Divergence is the featured read. On the 12h and daily, price made a new low while RSI and MACD histogram lows rose. That is regular bullish divergence on two higher timeframes, confirmed by higher lows on the 1h and 15m. Where I'm wrong: a break of the sweep low. That kills the spring, the five-wave count and the divergence at once. Risks: every timeframe is still bearishly aligned, and US CPI lands soon. A hot print could run straight through the stop. Published by YTIlab · OMNISIGHT REPORT Not investment advice. All decisions and responsibility are your own.

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