for gold, you're saying we're in a triangle, with the E wave having started lower. However, the triangle connecting ABCDE you show is neither descending, ascending, or symmetrical. Am I missing something?
- #30
- Mar 16, 2012 8:39am Mar 16, 2012 8:39am
Well done on SP 1400. I do not expect it to hold for now either, but do you really believe it will drop below 1300? Not saying I don't think it will or not, just curious about your opinion.
- #32
- Mar 23, 2012 1:26pm Mar 23, 2012 1:26pm
Opinion is that we are due somewhat of a correction in the SP500.
Nice work Snowrider! SP500 will close the week under the 1400 mark and reinforces the downwards trend.
- #37
- Mar 25, 2012 3:11pm Mar 25, 2012 3:11pm
Quote from Wide Tailz:
[b]For similar reasons, I have a lot against fundamental analysis.
EW fits into my trend following system by filtering the buy signals by wave type. My be$t trades, by far, have been during a third wave (either the general market or the stock itself).
Wave 3 is the first higher low and breaks the previous trend line, and typically follows noticeable divergence in MACD, RSI, money flow, Stochastics, ROC, and any other momentum indicator. A huge candle as the dam breaks is the final confirmation.
OP: my comment...
I strongly agree with you that the best and easist trades are on the wave-3. About the question how I "take the corrective wave counts", I start from the highest possible degree of timeframe (e.g., montly chart) to analyze and then scale down to the tradeable timeframe (e.g., daily chart). Therefore, sometime a corrective wave in a monthly chart still has some impulsive wave in the daily chart which we can make money from.