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Don't know what this portion of a chart is intended to prove, but I
don't believe it would look like a triple top to any experienced chart
reader with a passing acquaintance with the basics of EW. I have not
referenced the historical chart and I would not make a decision based on
what I see on this one chart because effective chart reading is best
accomplished using several time frames and more data. However, from what
I see in this chart without any other context, there appears to be a
completed impulsive wave (w.3?) and a very clear ABC correction (w.4?)
under construction which, upon completion would likely be followed by
another impulsive wave (w.5?).
What this chart does not prove is that chart reading is a waste of time,
although it may not be your cup of tea. Chart reading does not always
provide a clear picture, however about 50% of the time it can provide
very low risk, high probability trades to the experienced chart reader.
The experienced chart reader stands aside when the picture is not clear
in the security being examined - not a problem since there are many fish
swimming in the ocean.
Earl
----- Original Message -----
From: "wong" <whs@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, December 30, 1999 10:12 PM
Subject: [RT] Re: GEN: optical illusion
> Hi All:
>
> Here's a weekly chart of DOW back in the early 90s. Needless to say,
what
> happened AFTER the last right bar (weekly) was still a HUGE upward
movement.
>
> As I said before, I'm a very poor chart reader. To me, the formation
at
> the right of the chart looks like a triple top formation - the last
top is
> lower than the second one which is lower than the first one. It looks
like
> the market is going to topple very soon...
>
> Well, I'm wrong, of course.
>
>
> How many of us here in RT can honestly say (without taking into
> consideration that the ultimate outcome WAS still an upward movement)
that
> they can predict an upward movement from here on?
>
>
> 90%? 80% 70% 60% 50%
>
>
> 50% is like flipping a coin. No big deal.
>
>
> Another question: Knowing that the NASDQ has reached new high, how
many of
> us have predicted it right and purchased stocks/calls and become
billionaires?
>
>
>
> Regards,
>
> Wong
>
>
>
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