|
PureBytes Links
Trading Reference Links
|
Extracts"
We have to continue with our analysis. The A-B-C irregular
failure is complete. Now we have to try and find out how to
label this A-B-C to a wave of one higher degree. The A-B-C is
a corrective wave. It can be any of the following waves.
1. (A) wave
2. (B) wave
3. X wave
4. Wave 2
5. Wave 4
6. The A-B-C could also be the first 3 of a running double-three
7. It could also be the second 3 of a running double-three
Let us see if we can discard some of the above possibilities.
1. (A) wave
If the A-B-C is an (A) wave of one higher degree, the market
should follow-up with an upward (B) wave. Somehow, I find
this very difficult to digest. It goes against any logical
thinking. So let us drop this possibility for the time being.
2. (B) wave
In this case, the market should open up an impulsive (C) wave
upwards. This (C) wave should be at least 1.618 times the (A)
wave of the (A)-(B)-(C) pattern of which the A-B-C irregular
failure is the (B) wave.
3. X wave
I find this unlikely. Although theoretically a X-wave can be
any corrective pattern, X waves are basically neutral patterns
connecting two corrective phases. For a X wave to signal
strength or weakness in the market is an unlikely happening.
So, let us also keep this possibility out for the time being.
4. Wave 2
In that case, wave 3 should be a minimum of 1.618 times wave 1.
Of course, wave 3 must be impulsive.
5. Wave 4
If the irregular A-B-C failure was a 4th wave, then the 5th wave
will extend and must be a minimum of 1.618 times the 3rd wave.
6. If the A-B-C is the first 3 of a running double-three, then the
subsequent move upwards will be a corrective x-wave which must
exceed the top of wave B, i.e. 9367.
7. If it is the second 3 of a running double-three, the market has
just completed a 2nd wave of some degree and the subsequent
3rd wave upwards will be explosive
"
|