RE: [RT] Wolfe Waves

["EAdamy" <eadamy@xxxxxxxxxxxx>]

As I suspected, point #3 on the ES was too shallow for the trendline at point #5 to offer any resistance. #3 on the NQ gave us a steeper line which offered a slight retracement at point #5, however point #4 failed to pull back into the body to a point below #1. Probably need a 162% retracement of #1-#2 at point #3 and a 50% retracement of #2-#3 at point #4. The wide swings required should be an indication of a blow-off in progress.

 

Finally, my golden rule is to never, ever trade against the tape when the AD volume ratio ((AD up - AD down) / (AD up + AD down)) on both NYSE and NASDAQ are running above 0.50.

 

Earl

 

-----Original Message-----
From: realtraders@xxxxxxxxxxxxxxx [mailto:realtraders@xxxxxxxxxxxxxxx]On Behalf Of EAdamy
Sent: Tuesday, September 12, 2006 9:12 AM
To: realtraders@xxxxxxxxxxxxxxx
Subject: RE: [RT] Wolfe Waves

This is a tale of two Wolfe Waves. All charts are 15 minute. Upper left is ES ... note the slope of the upper line which is so shallow that it fails to catch the really significant reversal retracements at 162% and 200% ... it will clearly have to exceed the upper line by quite a bit to reach the 1320 potential reversal area. Lower left is NQ ... note the slope of the upper line which is steep enough to catch the significant reversal retracement area around 1624 without a huge run above the upper line. On the right we have AD volume oscillators which are running overwhelmingly bullish. In my view, the NQ WW is far more likely to work.

 

Conclusion ... I believe it is important to have a fairly steep upper line in order for the WW to hit the extreme retracement zone required to offer a low-risk reversal. Let's see how it works out.

 

Earl

 

__._,_.___

SPONSORED LINKS

Small business finance	Business finance online	Business finance training
Business finance course	Business finance schools

Your email settings: Individual Email|Traditional
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch to Fully Featured
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe

__,_._,___