Here is a view back to 2008 correction. We just completed a larger wave 4 and I am expecting a pullback for a wave 2 of (5) to the value area of 2400-2500. From there, I expect an explosive wave (3) up taking us to all time highs. I am short term short and will be long once reaching the target.
Normally, Wave 4s are the longest, with the most chop as sellers and buyers battle it out and there is consolidation. I like what you are showing but this is not "normal" EW. A decade of wave 3 and then wave 4 lasting a month? Whats the rush?
follow_the_money
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@frodo75, interesting thought. you have a chart with your current EW count Frodo?
frodo75
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@follow_the_money, Dont do EW anymore. I use some favorite technical indicators, Fibs and price action. EW clouds my judgement but I did spend a few years on it so did a bit of reading then.
dharris33
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@frodo75@follow_the_money Wave 4's are typically a .382-.5 retracement, making it typically the shallower retracement. Wave 4, in the chart, started back in September of 2018, making it nearly a year and a half of price consolidation. this is indeed a "normal" EW. I do have an alternate count in which wave 3 ended in February 2020 and we have just completed the B wave with a C wave to follow down to 1900. As more price happens, we gain more clues and can make decisions based on an updated view.
frodo75
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@dharris33, Don't remember reading that Wave 4 portions could rise above wave 3's top. Expanded abc? Anyway. Good luck!
dharris33
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@frodo75, I don’t think I can add images here. But look up expanded flats. In expanded flats, wave B of the 3-3-5 pattern terminates beyond the starting level of wave A, and wave C ends more substantially beyond the ending level of wave A. Expanded flats are actually the most common form of flats.
Anyways, I also have an alternate count. I’ll share it out later today as mentioned earlier. Either was $2500 coming imo. I use a combination of EW, Fibs, and Supply and Demand.