This chart is constructed by taking the High+Low/2 of each daily candle to plot a single data point, which is then connected by the line. By doing this it helps eliminate the giant wicks, and also helps make waves easier to see. Since the price of the line is different than what you'd see on a candle or bar chart, you get different retracement targets and overall the form of the market looks different.
One of the biggest difference that can be spotted on this chart is the daily Gartley Harmonic. On a candle or bar chart, this pattern is non-existent in this position, AB is simply too high to be any kind of XABCD when viewed on a candle/bar chart. However, when viewed with the h+l/2 line chart you can clearly see that a Gartley formed, played out perfectly, and is most likely still playing out, meaning that we are going to keep going lower. Another difference you can see in the line chart is the extension targets for the two big bull runs that we had (c:5).
Now, what's going on right now? Well you can see that we are pushing up against the top of this channel, you can also see that we have a nice extension inside of Wave ii hit where c=1.618a (EDIT: precisely c=1.5a), which is another bearish sign. So long as my count is correct and we are in a Wave 3 extension: Wave ii has retraced far enough to be completed and it is also exactly .618 of Wave 2 time-wise. Still assuming my count is correct as well as my target for the end of Wave ii, my predictive target of 169 for the H+L/2 LINE CHART should be fairly accurate. Note this target does not take into account any wicks that may form at a lower price, a candle/bar chart may look very different than this line chart. However, this chart should give us a good sense of which way the market is going to be going for the next couple of weeks.
“A single ray of light from a distant star falling upon the eye of a tyrant in bygone times, may have altered the course of his life, may have changed the destiny of nations, may have transformed the surface of the globe, so intricate, so inconceivably complex are the processes of nature.”
— Nikola Tesla
One of the biggest difference that can be spotted on this chart is the daily Gartley Harmonic. On a candle or bar chart, this pattern is non-existent in this position, AB is simply too high to be any kind of XABCD when viewed on a candle/bar chart. However, when viewed with the h+l/2 line chart you can clearly see that a Gartley formed, played out perfectly, and is most likely still playing out, meaning that we are going to keep going lower. Another difference you can see in the line chart is the extension targets for the two big bull runs that we had (c:5).
Now, what's going on right now? Well you can see that we are pushing up against the top of this channel, you can also see that we have a nice extension inside of Wave ii hit where c=1.618a (EDIT: precisely c=1.5a), which is another bearish sign. So long as my count is correct and we are in a Wave 3 extension: Wave ii has retraced far enough to be completed and it is also exactly .618 of Wave 2 time-wise. Still assuming my count is correct as well as my target for the end of Wave ii, my predictive target of 169 for the H+L/2 LINE CHART should be fairly accurate. Note this target does not take into account any wicks that may form at a lower price, a candle/bar chart may look very different than this line chart. However, this chart should give us a good sense of which way the market is going to be going for the next couple of weeks.
“A single ray of light from a distant star falling upon the eye of a tyrant in bygone times, may have altered the course of his life, may have changed the destiny of nations, may have transformed the surface of the globe, so intricate, so inconceivably complex are the processes of nature.”
— Nikola Tesla