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My understanding is that a 5th wave can extend, tho rarely. tony. The main
point is that a 3d wave can NOT be the smallest wave, though it normally is
the longest one.
-----Original Message-----
From: Rajesh <rajesh@xxxxxxxx>
To: metastock-list@xxxxxxxxxxxxx <metastock-list@xxxxxxxxxxxxx>
Date: Monday, September 21, 1998 12:04 PM
Subject: Elliotscope : Current
>For those not interested , with my apologies ,please use your delete
>button:
>
>There are some descrepancies and will keep you guys posted of any
>important development (Will skip heavy technical stuff).
>
>Extracts:
>
>Ref your message expecting a 5th wave extension in the current move
>downwards.
>
>If my reading is correct, the 5th wave cannot extend. The wave after
>a "running double-three" MUST NECESSARILY BE THE EXTENDED WAVE. The
>"running double-three" is a powerful corrective pattern, meaning that
>the wave that follows will often exceed 2.618 times the previous wave.
>In this case, the 3rd wave was 1272 points (8672 less 7400). Check
>your chart as to how long the 1st wave was which began at 9367
>downwards. You will see the 3rd wave will be approx. 2.618 times
>the first wave.
>
>5th wave extensions will be as under.
>1. The minimum length of the 5th wave extension should be the distance
> from 0 to 3, e.g. if we take 0 = 9367 and 3(end of 3rd wave) = 7400
> you get the minimum length as 9367 - 7400 = 1967 points. If you
> take the beginning of the 5th wave as 8106, then the minimum target
> you are looking at is 8106 less 1967 = 6139.
>2. If the 4th wave is an irregular failure or a running correction,
> then the 5th wave MUST BE at least 1.618 time the 3rd wave.
>3. The maximum length of a 5th wave extension will not exceed 2.618
> times 0 to 3 added to the bottom (or top) of the 3rd wave, e.g. in
> our case 0 to 3 is 1967. 2.618 X 1967 = 5149 points. Bottom of
> wave 3 is 7400 so max target is 7400 less 5149 = 2251.
>
>The beautiful part of 5th wave extensions are post market action after
>the 5-wave sequence with the 5th wave extension is complete. First
>the market reverses and goes to break the 2 - 4 trendline in less time
>than the 5th extension took to complete (the a-wave). It will then go
>to test the bottom (or top) again (the b-wave) and then rapidly rise
>(or fall) making the c-wave. The c-wave MUST AND WILL retrace more
>than 61.8% of the 5th wave extension. THIS IS MANDATORY AND IT WILL
>HAPPEN. Also, the 5th extension WILL NEVER BE FULLY RETRACED if the
>market has to continue is the same direction. If the 5th wave
>extension gets retraced fully THEN THE MARKET HAS REVERSED DIRECTION.
>
>Anyway, getting back to the point, that is the main reason I discarded
>the count that 5 waves with a 5th wave extension had ended at 7400
>level and the resulting correction was a b-wave (the count you were
>taking). Because market action did not adhere to the rules that must
>take place after a 5th wave extension.
>
>
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