Ok everyone, let's try this again. I believe this sequence (from the Jan. 14 high in the 4H time frame) is near its end.
First and quickly, allow me to explain the labelling...
Green tags are location labels, not counts (as in Elliott wave counting).
The other tags represent different processes playing out. Each process has it's own unique count.
The red and blue triangles and squares (above/below the candles) are the countable points in the sequence.
The orange lines show the 'count path' over areas that may be difficult to track.
The red arrows are FCT's (Fractured Counter Trends) - these are important because some processes skip counting the FCT terminals.
In Magenta terminology the FCT's are "pulls" while the trending parts of a sequence are "pushes."
The main sequence here is called a 'cycle' - it's a repeating 2, 4, 6 count that usually skips FCT terminals (unless a 'count-through' signal appears).
The bolded '6' tags are where the cycle ends.
Any tag with a dot after the number (such as "1.") indicates a count that is in-between either 2 or 4 or 6. "SK" means "skip" (the count skips the terminal).
The red tags form the 'type' which is mirrored at the end of a trend/sequence by the 'antitype' (red/gray tags).
The antitype is always appended to the end of the cycle.
Finally, the yellow or orange tags represent 'prime' processes which can be found at the pull 1 and/or pull 2 terminal.
When a prime count converges with an antitype or another prime count, this can indicate a highly probable turning point (once the absolute high/low is made).
The "absolute" endpoints of a sequence/trend are never counted in Magenta.
Ok, I said all that to say this: Here's how this makes sense and why I believe a new low (below 1.11214) should be a great location to go long.
We can draw a prime set from the A to C count or from A-G. Since our A-C count yields only 4, we'll use the A-G count which gives us a set of 14/12/6. That means that counts based on a combination of these 3 numbers, and their interaction with other processes, will end and turn the trend. At point K you can see we've counted 14 from point G. Why 14 instead of 12? Because 14 converges with our cycle end at point K (white/bold 6 tag).
Now the end of a 2, 4, 6 cycle will not always turn the trend, what we call "partial cycles" can be appended to the cycle. So why do we think that, in this case, the trend will turn on 14 and 6? The answer has to do with the type/antitype process...
Like primes, types appear within the first two pushpulls (waves 1-4), and the market mind has various ways of signaling the 'type.'
Notice that at point D, in push 2, we get a candle with blue marks at its top and bottom. There are only two such candles in the sequence. These are called "DMC's" - Double Marked Candles, and they are often used to signal things or segment counts. So our suspicion is that this particular DMC is marking our type. The count from A to point D is 6.
When the market points to a type of 6 that can mean one of two things. 1) The endpoint will appear exactly after a cycle terminates, or 2) the endpoint will appear 6 counts after the cycle terminates.
If the second option where playing out it would match up with a 14/6 prime count. So if we get stopped out on this trade, we could just enter again at that point. But the odds may be better at point K. Why?
There's another process that markets use to create meaning, it's called "Equivalence" or simply "EQ".
EQ can occur in counter-trending or trending counts. Often it will be an FCT only count, but in this case, count the trending segments of the sequence...
In push 1 we get zero, 4 in push 2, 4 in push 3, and 6 in push 4. Zero + 4 + 4 + 6 = 14. Fourteen is our high prime!
So long story short, a number of process are coming together at point K...
If you're new to Magenta, I recommend (if you decide to trade it) that you start out with nominal unit/lot sizes or paper trade it.
Gauging what will follow the sequence end is anyone's guess, market forecasting really hinges on what the current sequence tells you about it's own ending.
Place your stop loss above the absolute high/low event (mark) to the tune of whatever the spread is - usually 1-2 pips works for me.
Thanks for your time. Enjoy watching this play out!
First and quickly, allow me to explain the labelling...
Green tags are location labels, not counts (as in Elliott wave counting).
The other tags represent different processes playing out. Each process has it's own unique count.
The red and blue triangles and squares (above/below the candles) are the countable points in the sequence.
The orange lines show the 'count path' over areas that may be difficult to track.
The red arrows are FCT's (Fractured Counter Trends) - these are important because some processes skip counting the FCT terminals.
In Magenta terminology the FCT's are "pulls" while the trending parts of a sequence are "pushes."
The main sequence here is called a 'cycle' - it's a repeating 2, 4, 6 count that usually skips FCT terminals (unless a 'count-through' signal appears).
The bolded '6' tags are where the cycle ends.
Any tag with a dot after the number (such as "1.") indicates a count that is in-between either 2 or 4 or 6. "SK" means "skip" (the count skips the terminal).
The red tags form the 'type' which is mirrored at the end of a trend/sequence by the 'antitype' (red/gray tags).
The antitype is always appended to the end of the cycle.
Finally, the yellow or orange tags represent 'prime' processes which can be found at the pull 1 and/or pull 2 terminal.
When a prime count converges with an antitype or another prime count, this can indicate a highly probable turning point (once the absolute high/low is made).
The "absolute" endpoints of a sequence/trend are never counted in Magenta.
Ok, I said all that to say this: Here's how this makes sense and why I believe a new low (below 1.11214) should be a great location to go long.
We can draw a prime set from the A to C count or from A-G. Since our A-C count yields only 4, we'll use the A-G count which gives us a set of 14/12/6. That means that counts based on a combination of these 3 numbers, and their interaction with other processes, will end and turn the trend. At point K you can see we've counted 14 from point G. Why 14 instead of 12? Because 14 converges with our cycle end at point K (white/bold 6 tag).
Now the end of a 2, 4, 6 cycle will not always turn the trend, what we call "partial cycles" can be appended to the cycle. So why do we think that, in this case, the trend will turn on 14 and 6? The answer has to do with the type/antitype process...
Like primes, types appear within the first two pushpulls (waves 1-4), and the market mind has various ways of signaling the 'type.'
Notice that at point D, in push 2, we get a candle with blue marks at its top and bottom. There are only two such candles in the sequence. These are called "DMC's" - Double Marked Candles, and they are often used to signal things or segment counts. So our suspicion is that this particular DMC is marking our type. The count from A to point D is 6.
When the market points to a type of 6 that can mean one of two things. 1) The endpoint will appear exactly after a cycle terminates, or 2) the endpoint will appear 6 counts after the cycle terminates.
If the second option where playing out it would match up with a 14/6 prime count. So if we get stopped out on this trade, we could just enter again at that point. But the odds may be better at point K. Why?
There's another process that markets use to create meaning, it's called "Equivalence" or simply "EQ".
EQ can occur in counter-trending or trending counts. Often it will be an FCT only count, but in this case, count the trending segments of the sequence...
In push 1 we get zero, 4 in push 2, 4 in push 3, and 6 in push 4. Zero + 4 + 4 + 6 = 14. Fourteen is our high prime!
So long story short, a number of process are coming together at point K...
If you're new to Magenta, I recommend (if you decide to trade it) that you start out with nominal unit/lot sizes or paper trade it.
Gauging what will follow the sequence end is anyone's guess, market forecasting really hinges on what the current sequence tells you about it's own ending.
Place your stop loss above the absolute high/low event (mark) to the tune of whatever the spread is - usually 1-2 pips works for me.
Thanks for your time. Enjoy watching this play out!