SOL Short Trading Setup: The Alligator Awakens!

Wave 4 wedge forming — watch for breakdown. Neely rules and Alligator indicator confirm setup.

SOL Trading Setup: The Alligator Awakens! 🐊

The Chart Breakdown
Looking at this SOL/USD hourly chart, we’ve got a textbook Elliott Wave setup using the Williams Alligator and Neely’s NeoWave rules.

The Wave Count Story
ABC: That larger three-wave rally? Done and dusted. ✅
1-2-3-4-(5): We're now in a five-wave decline, currently sitting in wave 4.

Neely Rules Check ✔️

Price & Structure:

• Wave 3 is not the shortest: travels farther than wave 1 and exceeds projected wave 5 → ✅
  
• Alternation: Wave 2 was a sharp ABC; Wave 4 is a flattening wedge/triangle → textbook alternation ✅
  
• No overlap: Wave 4 doesn’t enter wave 1 territory → clean as a whistle ✅
  
• Equality guideline: The green box shows −2.74 %, mirroring wave 1 → picture-perfect ✅
  

Time Rules (Neely’s most overlooked):

• Wave 4 has taken ~25 bars vs. wave 2’s ~15 bars → passes the time-ratio test ✅
  
• Wave 5’s projected end falls within the vertical marker from wave 4’s high → on schedule ✅
  

Alligator & AO Confirmation 🐊

• Alligator lines compressing during wave 4 → energy is building
  
• AO divergence: red bars deepen in wave 3, shrink in wave 4 → classic wave 5 setup
  

The Trading Plan 🎯

Entry Strategy:
• Stop-limit sell just below wedge support (~$147)

Risk Management:

• Stop Loss: One ATR above wave 4 high — protects against a throw-over
  
• Time Stop: Exit at market if not in profit after 70 bars
  

Profit Targets:

• TP-1: 100 % of wave 1 length (green arrow)
  
• TP-2: Trail stop if AO shows bullish divergence near target zone
  

The Caveat ⚠️
If wave 4 drags on much longer (>2× its current length), it could evolve into a complex correction. Time is key — watch that clock.

Bottom Line
This setup checks all the NeoWave impulse boxes. The structure is clean. The Alligator is asleep. And we’re approaching a wedge break.
Short the break, target the equality zone, and respect your time stop.

Good traders follow rules. Great traders follow Neely rules. 😉
Agree or disagree? Drop a comment or share your chart!