in the following text we take the retracements within an uptrend into context , all things apply
in the same way in down trends , but vice versa. these following illustrations are based
purly on price behaviour, we single out the time intervalls for now.
In this connection, it should be noted that the same principles which apply to the large swings also
apply to the smaller moves and to the day-to-day buying and selling waves. Thus, a careful
examination of your Charts, over a period of time, will reveal numerous examples of the setups above.
These will appear on a small as well as a large scale. However, you must allow for variations.
The same basic characteristics may be observed; but the time and magnitude of price movement and ,
and the extent and sequence of price movements almost invariably will differ.
A Retracement is nothing more then a temporary reversal in the direction of an instrument that goes against the
the characteristics of a strong rally and therefore pinpoint retracements for an entry into the prevailing trend
can be identified by simply observing the buying vs the selling pressure, usually the rallies in an uptrend
are more pronounced in the stride , pace and duration compared to the retracements/ corrections , aswell
as the ability of the or forces to attract a following in advances and declines, rallies and reactions.
so in a comparetive strong market we have strong big buying waves vs. small weak selling waves,
judged by the responsiveness of the market to buying and selling impluses.
We must now assume, in view of the above, that the trend is tentatively upward; but this is subject to
confirmation by the appearance of higher support on the next reaction/retracement;
The waves of the market furnish a clear insight into changes in . By learning to judge
all sizes of market waves, you will gradually learn to spot the time when a rising market or a rally, and the
time when a declining market or a reaction has halted and is about to reverse.
These are the turning points.