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Sometimes one has to look at other clues - any time I see a big gap I figure
it's a w.3, anytime I see my w.4 overlapping my w.1 I toss the lot, and when
my w.1:w.3 relationships don't work I look to see if my w.3 has subdivided,
ditto for w.3:w.5. Not infrequently, there will be no recognizable count in
whatever you are trading and that's the time to stand aside, trade a
different time frame, use alternative patterns (e.g. inside/outside/reversal
bars) or look at a similar security. For example, the impulse wave in the
last rally on daily chart were overlapping (suggesting corrective) in the
S&P but had clear EW counts in the ND100 so I used the ND100 as a guide in
trading the S&P as well as ND100. In S&P intraday, yesterday's rally voided
my count of a w.3 low and w.4 correction. I had nice tradable counts in the
bonds, but they've pretty much gone out the window. I pretty much ignore the
EW corrections beyond simple 5/3/5 and 3/3/5 as they must be forced to come
up with an explanation for market action.
Earl.
----- Original Message -----
From: charles meyer <chmeyer@xxxxxxxx>
To: REAL TRADERS <realtraders@xxxxxxxxxxxx>
Sent: Friday, August 06, 1999 10:08 AM
Subject: GEN: EWT COUNT?
>
> Group:
>
> Upon inspection of a 15 minute chart of the S&P I cannot get
> a legitimate count of 5 down waves from the July 19 top through
> the low yesterday. My count indicates that if it were a 5- down
> count wave 3 would be shorter than both wave 1 and 5. Con-
> sequently, I can only get a three down in terms of both price
> and time. Yes, there are 5 waves down but the rules don't ap-
> pear to verify this as legitimate. Am I wrong? The conclusions
> are that this entire correction at worst is not a ziz-zag and down-
> side risk is limited in terms of price? That is to say, in EWT
> terms we are looking for either a flat or complex correction.
> Would someone like to correct my thinking? I am open-minded to other
> possibilities.
>
> Charles
>
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