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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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