USTEC Trading The Complex Correction Cycle
USTEC Trading The Complex Correction Cycle
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NASDAQ — Multi-Timeframe Overview
The H4 execution chart (left) shows a harmonic-driven decline resolving into a completing 5-wave Elliott impulse lower. Price rolled over from descending channel resistance and is unfolding in a clean five-wave sequence, with the measured Fib legs (blue boxes) stacking into progressively deeper targets. The harmonic symmetry of the swings—each leg respecting proportional Fib-measured moves—is guiding price toward the broader equality objective near the 28K zone. Critically, this final wave-5 extension is projected to sweep liquidity beneath the prior major swing low, a classic stop-run that often marks the exhaustion point of a corrective sequence. With momentum rolling over in confluence, the setup points toward downside exhaustion and a bullish reversal reaction once that terminal target is tagged and sub-swing-low liquidity is taken.
The higher-timeframe chart (right) remains constructively bullish, riding its rising channel with higher highs and higher lows intact near the upper Fib band. The H4 flush into 28K reads as a corrective liquidity sweep within the larger uptrend, not a structural break. As long as HTF channel support and the prior higher-low framework hold, the dominant bias stays up—reinforcing the case that the wave-5 sweep is a buy-the-dip liquidity event rather than the beginning of a trend reversal.
The Nasdaq is potentially completing a harmonic five-wave decline into the 28K equality objective, engineered to sweep liquidity below the prior major swing low, then align back with the bullish higher-timeframe trend. The highest-probability path is liquidity grab → downside exhaustion → bullish reversal, with invalidation only triggered on a sustained HTF break of channel support should the sweep fail to reclaim.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!