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I have a question for all of the Elliott afficiandos out there. :)
I've been reading 2 books on Elliott Wave: Elliott Wave Explained, by
Robert Beckman, and Elliott Wave Principle, by Robert Prechter. They
disagree on a very important point: the time necessary for corrective
waves to form.
Beckman says that the time required to correct an impulse move should be
in a realistic proportion to the overall time frame of the impulse.
IOW, if an impulse move lasts N amount of time, the corrective sequence
that follows should last somewhere in the order of N x .382 to N x .618.
Prechter says that this is not necessary. From what I can infer from
his writing and his counts, he thinks that if a corrective move is sharp
and deep enough, it can correct for an impulse move in a fraction of the
time it took for the impulse to develop. Two examples of Prechter's
counts in which he does this are the '29 to '32 bear market, which he
says corrects all of Supercycle wave 3 (1857-1929), and the 1987 crash,
which he says corrects all of Primary wave 3 (1984-1987).
Obviously, this issue is a key one in trying to determine where the heck
we are in a long-term Elliott framework.
What do the Elliott experts on RealTraders think? :)
Chris
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