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RB,
I'll give this one a try:
1) The first 2 waves, either 1,2 or A,B are pretty much impossible to tell apart.
2) Wave C is "normally" between .618 & 1.00 x wave A measured from the wave B top or bottom. Wave 3 is "normally" between 1.618 & 2.618 x wave 1 measured from the wave 2 top or bottom. Are these rules broken, of course!
3) What is your clue that it's a C vs. a 3? Check out the action around the 1 or A high or low on a pull back. Note the following:
a) On the first major retracement if price breaks back through the wave 1 or A high or low it's more likely a C.
b) On the first major retracement if price holds the wave 1 or A high or low it's more likely a 3. Remember wave 4 can't encroach into wave 1's territory.
Always be aware of what's going on around a 100% extension of the first wave measured from the top or bottom of the 2nd wave. Earl gave a good look tonight on his manual chart. Price is now around the critical area of A = C. Any retracement back up must hold below his W.A/1 for a 5 wave sequence to continue on down on that 60 minute chart. Any close through that point would signal an ABC pull back is complete.
Hope that makes some sense : >)
Lenny
In a message dated 9/24/2002 9:31:04 PM Eastern Daylight Time, rhodes@xxxxxxxxxxxxxx writes:
1. How can you tell if the down move is going to be an A,B,C correction
or a 1,2,3, of a new 5 wave down trend?
And how soon can one tell which it is?
During the A or 1 wave?
During the B or 2 wave?
During the C or 3rd wave?
Any indicators that tip the correct waves off?
I can see that in trading it may not matter which wave as long as you are
short during the down move.
But I am sure there must be a simple way to tell what is going on, so one
can be ready for the 4th and 5th waves down or the 1,2,3,4,5 waves up.
Any ideas?
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