For an example here on the SP index: Wave 3 hit just over a 1 to 1 before Wave 4 came down in an . Sub wave 3 of the overall 5 then hits a 1.618 exactly, subwave Wave 4 then sees a small correction before finally the 5th subwave moves up to form the overall 5th Wave with massive divergences across all indicators, specifically in my preferred indicator the . Once we saw Wave 5 form just above the 1.618 with the divergences it was a good RR short, to play this down for an correction overall to important support levels (we lost the first support last week)
Highlighted on my chart is how I'm trading this index with stops above Wave 5. I'm trading still the wave B which currently saw a lovely old support flip into resistance and then C downwards to a 1 extension of Wave A in the form of a . I will then zoom out to count and see if this on a smaller scale is still forming 5 waves within a bigger Wave A, this is something which will require a few more months of data and sentiment check.
Overall targets remain top of Wave 3 (and the support 3% above it), 0.382 and even the 0.5 . It must be noted though these are extremely targets that may take years to hit and of course i understand the repercussions of such an event.