The daily UKX since its all - time high is a good example of a completed or possibly still developing Elliott wave - Horizontal Triangle. The clue to discovering a Horizontal Triangle is that both rallies and declines have choppy moves that overlap prior sub waves.
The supposed Intermediate degree wave (A) is illustrated with detailed sub waves. The entire structure is a Single Zigzag with the supposed Minor wave C as an extended impulse wave that terminates with Minute wave "v" boxed Ending Diagonal Triangle. Note the overlap and general choppiness of the move down from the all - time high to the bottom of wave (A). The subsequent Intermediate degree sub waves all have the look of corrective patterns.
Intermediate wave (A) is a Single Zigzag Wave (B) is a Double Zigzag Wave (C) is a Single Zigzag Wave (D) is a Double Zigzag Wave (E) is a Single Zigzag
One alternate count - the Horizontal Triangle is incomplete and will continue meandering sideways. A more likely bullish alternate count is that the rally is a developing Ending Triangle which is another structure in which all sub wave themselves sub divide into three waves or a combination of three waves.
Looks like a 5-3-5 sequence lagging US equiites, mimicing same pattern. If so, we at or near 4th of latter 5; bit down, then bangup 5th of 5.
Geofftv1
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Mark, interesting hypothesis but we all know EW analysis is not an exact science!
Look how many times the experts get it wrong.
In your above chart you have the first boxed a,b,c as a flat, 3,3,5 structure.
Can you explain how your wave c is a 5 wave structure?
Hi
You are correct, Elliott wave is not an exact science. Nothing in Technical Analysis is an exact science, our goal is to gather and measure the evidence and then
form opinions based on the weight of the evidence.
There are no experts in this business only traders/analysts that have have more knowledge than the majority. This site helps to increase the knowledge level of its members.
Minor wave "C" of the single Zigzag I've illustrated is an extended Impulse wave. In these structures you can see the sub divisions of at least one of the sub impulse waves.
In stocks the third wave is usually the wave in which you can see the sub divisions, which it is in this example.
Counting Elliott waves is like figuring out a Jig Saw puzzle, figure out the easiest part first.
For this structure its Minute wave "iii" - boxed, the center part of this wave is Minuette wave (iii) this is the third of the third wave down and the are usually the strongest most dynamic of the primary trend impuse waves.
Minutte wave (iii) clearly is very strong and dynamic. From there you can clearly see the sub divisions of the larger degree Minute wave "iii" - boxed which is a classic five wave Elliott Impulse wave.
From that Impulse wave its easy to discover Minute waves "i" and "ii" - boxed.
The final Minute wave "v" - boxed is an Ending Diagonal Triangle (EDT) which is a termination wave of the primary trend. The first wave of an EDT is almost always the longest, in this case wave "one" of the EDT terminates
at where the lower trend line begins. (By the way I made a mistake in drawing the lower trendline) This line should connect first with the EDT's third wave and the fifth wave of the EDT usually breaks below the trendline - called a throwover.
Usually after an EDT is complete it implies a move at least back to the EDT's point of origin, and in many case much further beyond - which has happened.
Hope this helps.
Mark
Geofftv1
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@markrivest, Thanks Mark, I think we have the wrong a,b,c in your reply above.
I meant the first boxed a,b,c in BLUE going from 14th June to 9th Aug.
Hi that structure labeled "B' is the first short term counter trend move after the all-time high. At first glance it appears to be an Expanding Flat but the sub divisions of Minute wave "c" boxed are very choppy.
This structure from the point of origin Minute wave "a" boxed is a combinnation wave. I discuss this formation in my 12/23/18 SPX post.
Also see pages 52 and 53 of the 1998 edition of "Elliott Wave Principle"
Mark
The_Unwind
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Thank you, Mark for the complete encyclopedic,and personal definition here.
You are so impressive.