OK, so this is just an idea i'm toying with and I don't absolutely believe it myself just yet. I'm putting it out there for feedback and comments.
So, in my previous post I suggested that todays correction was wave 4 of a 5 wave Elliott move. You can read my thoughts on that here:
However, something about the wave structure doesn't look right to me. At first I thought that maybe its because it was being held in the wedge and nestled under the inverse H&S neckline; perhaps this was truncating the wave in some way. So I had a look at the previous up movement from the 6K low and noticed something interesting.....
In that upmove, wave 1 began with a a 4 spike wave (shown on my chart as the first set of green dots). This was Wave 1 and the subsequent correction to the first red dot was wave 2. Now if I look at the current up move, there is something similar going on here. Whilst I have been counting the move previously as 1, 2 3(i, ii, iii, iv & v) and 4, actually, the entire move could simply be a 1 & 2, on a slightly larger scale than the original up move from 6K. If that is the case, then wave 3, which would be the largest wave most likely, could potentially send us significantly north of the H&S (I haven't worked out the target, but if Wave 3 is longer than Wave 1 and comprising a sub wave structure, I reckon to at least over 14k). This may lead to wave 5 making H&S target.
As I said, I'm not sure i'm buying this myself at the moment, but it would explain the weirdness in structure of the current wave.
Lets see how it pans out.
Good luck!
So, in my previous post I suggested that todays correction was wave 4 of a 5 wave Elliott move. You can read my thoughts on that here:
However, something about the wave structure doesn't look right to me. At first I thought that maybe its because it was being held in the wedge and nestled under the inverse H&S neckline; perhaps this was truncating the wave in some way. So I had a look at the previous up movement from the 6K low and noticed something interesting.....
In that upmove, wave 1 began with a a 4 spike wave (shown on my chart as the first set of green dots). This was Wave 1 and the subsequent correction to the first red dot was wave 2. Now if I look at the current up move, there is something similar going on here. Whilst I have been counting the move previously as 1, 2 3(i, ii, iii, iv & v) and 4, actually, the entire move could simply be a 1 & 2, on a slightly larger scale than the original up move from 6K. If that is the case, then wave 3, which would be the largest wave most likely, could potentially send us significantly north of the H&S (I haven't worked out the target, but if Wave 3 is longer than Wave 1 and comprising a sub wave structure, I reckon to at least over 14k). This may lead to wave 5 making H&S target.
As I said, I'm not sure i'm buying this myself at the moment, but it would explain the weirdness in structure of the current wave.
Lets see how it pans out.
Good luck!