Another day another dollar living the dow-mageddon life haha, so what a great day of trading yesterday! Caught the sell off to close the mt4 gap we talked about yesterday, despite the "geniuses" on the news screaming stock market rally. Look at yesterdays fundamental news on the dow, it is all bullish but yet the dow dropped hard.. There is no such thing as news trading, it should be called fundamental guessing because everyone interprets the news differently.
Left side count: Alright to keep my bullish count alive I needed to do some tweaking, again we have the wxyxz triple combo complete and that is history now. So we are in the process of a POSSIBLE impulse and possible CORRECTION, why do i emphasize that it is possible?! Because there is sacred mathematical criteria that was brought down to me by Ralph Elliott's ghost, no not really I just have read every book that exists regarding Elliott Wave and I have my own criteria now based on my own trade secrets ;) Lets break down this impulse. Wave 1: Leading Diagonal, confirmed by the 5 choppy overlapping waves followed by wave 2 being a deep correction which is text book for leading diagonals. Wave 3 extended to ratio 1.618% of the distance traveled from waves 1 and 2 (textbook again). Wave 4 was standard and wave 5 relates to wave 1 in size. So I am happy with the impulse idea upwards, whats scares me about the bull count is the correction. Any time you see the correction more impulsive than the prior impulse you had in mind, it is suspect. Remember corrections of all degrees usually take x2 long as the impulse does, there are exceptions in high volatility situations but generally its rule of thumb when considering continuation patterns.
Right side count: So our (Regular Flat) idea played our perfectly, look at the reaction to the 90% retracement, this is what I mean guys when I talk about reactions to an Elliott Wave count. If your count is correct there will be a confirmation reaction to key points, and if there is no reaction then you are playing with fire if you decide to trade it. Coming off of the strong move down that very well can be an impulse, we now will monitor the correction of that move to see which count is confirmed.
Game plan: At this point the bearish count is more valid, but we need to see how it plays out a bit before making a trade. If we get a corrective pattern over the Asain session then it'll be more downside later. If we get impulsive now then we should look for buy opportunities. In the moment it seems we wont have an answer tell the London session rolls around. Good luck guys! Lets have another profitable day!
Left side count: Alright to keep my bullish count alive I needed to do some tweaking, again we have the wxyxz triple combo complete and that is history now. So we are in the process of a POSSIBLE impulse and possible CORRECTION, why do i emphasize that it is possible?! Because there is sacred mathematical criteria that was brought down to me by Ralph Elliott's ghost, no not really I just have read every book that exists regarding Elliott Wave and I have my own criteria now based on my own trade secrets ;) Lets break down this impulse. Wave 1: Leading Diagonal, confirmed by the 5 choppy overlapping waves followed by wave 2 being a deep correction which is text book for leading diagonals. Wave 3 extended to ratio 1.618% of the distance traveled from waves 1 and 2 (textbook again). Wave 4 was standard and wave 5 relates to wave 1 in size. So I am happy with the impulse idea upwards, whats scares me about the bull count is the correction. Any time you see the correction more impulsive than the prior impulse you had in mind, it is suspect. Remember corrections of all degrees usually take x2 long as the impulse does, there are exceptions in high volatility situations but generally its rule of thumb when considering continuation patterns.
Right side count: So our (Regular Flat) idea played our perfectly, look at the reaction to the 90% retracement, this is what I mean guys when I talk about reactions to an Elliott Wave count. If your count is correct there will be a confirmation reaction to key points, and if there is no reaction then you are playing with fire if you decide to trade it. Coming off of the strong move down that very well can be an impulse, we now will monitor the correction of that move to see which count is confirmed.
Game plan: At this point the bearish count is more valid, but we need to see how it plays out a bit before making a trade. If we get a corrective pattern over the Asain session then it'll be more downside later. If we get impulsive now then we should look for buy opportunities. In the moment it seems we wont have an answer tell the London session rolls around. Good luck guys! Lets have another profitable day!