ATCTA

The Nasdaq 'Dot Com' Hyperwave

NASDAQ:IXIC   Nasdaq Composite Index
The Nasdaq Hyperwave formed from 1995 to 2003.
I will be posting all HW I can display on tradingview that only goes back to around 1987 approx. Here are the rules for Hyperwave formation.
General Observation - All Hyperwaves are related to global macro economic phenomena, that will be apparent in the examples.
Chart parameters. All Hyperwaves are constructed on a weekly linear chart. Only weekly closes are used to form trend line . This is critical.
Phase 1 - All price action is below a horizontal line for the particular asset for a number of years, generally between 5-10.
Phase 2 - All Price action is above an angular trend line that begins after a break through the Phase 1 horizontal line. Phase 2 generally lasts from 2-5 years.
Phase 3 - The excitement builds - All Price action is above an even steeper angular trend line picking up momentum before the extreme Phase 4, Phase 3 generally last 1-3 years.
Phase 4 - The New Paradigm - All price action is above an extremely accelerated weekly trend line , it literally almost goes straight up, as straight up as you can go on a chart. The break on this trend line on a weekly closing basis is the absolute exit point and one must step aside no matter how bullish . What follows next is the crash/correction.
Phase 5 - The Crash - All price action is below a weekly trend line during the crash/correction phase. If one does not get out in time there is reason to hold on here because there is one last chance to get out without giving back so much profit made in Phase 4. Once this down trend line is broke, Phase 6 begins.
Phase 6 - The Bull Trap - All price action is again above a trend line that broke through after Phase 5. Absolute critical rule, the peak of Phase 6 will never reach the prior peak of Phase 4. Once price breaks this final Phase 6 line it will begin Phase 7.
Phase 7 - The beginning of the end. All price action will be below weekly down trend lines , however unlike straight lines used for all prior phases, the Phase 7, generally the longest in terms of time lasting several years, will fan out the further out in time you go. The main point of the Phase 7 is that it almost without exception, will return price all the way back down to the beginning below the Phase 1.
The Nasdaq HW did not return all the way back to Phase 1, which makes it special, but also makes this extremely important for the next chart, which is maybe the first of its kind, a fractal HW within a larger HW structure. See Next chart.
Jay,

This is excellent !

Your use of linear close only charting is for me groundbreaking analysis.
I will have to reserve valuable time to review this post in detail.

Please take this suggestion to heart.
POST MORE OFTEN !
Your analysis is a compelling and should reach the trading community frequently.

THE_UNWIND
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ATCTA The_Unwind
@The_Unwind, thank you for the kind response. I will post more examples today and hopefully you can find them useful and hopefully at least interesting!
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