DislikedBob Prechter Warns Market Correction "Larger Than The Malaise Of The '30s" Looms {image} "Because people do not perceive their moods, tops and bottoms in markets sneak right past them. At the top, people will love the market, and events and conditions will provide them with ample bases for rationalizing being heavily invested... the degree of the corrective wave will be larger than that which created the malaise of the 1930s and 1940s."...Ignored
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On the other hand, over the years I and my colleagues have made a number of valuable observations about wave forms that Elliott never noticed. Some have become well-known, others not. They are:
1. Wave three is most often the extended wave.
2. Peak acceleration occurs at the structural center of each wave, i.e. in wave 3 of 3 of 3.
3. In the stock market, fifth waves are always weaker than third waves.
4. B waves of contracting triangles often reach a new price extreme.
5. Even so, E waves of triangles in the wave four position always end within the territory of the preceding third wave.
6. Double flats are somewhere between rare and non-existent; I’ve seen flat-X-triangle serve as double three.
7. The barrier triangle is a more useful idea than the idea of independent ascending and descending triangles.
8. Zigzags often adhere to channels.
9. In zigzags, A waves tend to be steeper than C waves.
10. In flats, C waves tend to be steeper than A waves.
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