This is a follow-up to my 8/26 post.
In that post, I was looking at this picture.
Today's market action took us over the high of supposed wave (c), which in a converging triangle, is not allowed.
We still have a series of a-b-c's and a higher highs off the bottom gravitating toward a trendline.
That means a triangle is still likely, just the count was wrong, and the slope of the upper trendline.
My renewed expectation from here is that (c) was not over, and is becoming complex. I have relabeled the chart with this assumption in mind. I also threw a new dashed line tentatively out there at the point where (c) would equal 78.6% of (a). There is a light gray dashed line above that, which is a parallel line to the bottom end of the assumed triangle. Essentially if price moves equal to or higher than the light gray dashed line, then this formation simply cannot be a triangle at all and this whole analysis is out the window. I hope that makes sense.
In summary, last week it appeared we were very close to finishing the whole corrective pattern going back to 8/9, but it looks like this is going to drag on for a while longer. If this is a triangle like I have depicted, then we still need the rest of (c), (d) and (e).
Disclaimer
I'm not a financial advisor nor a broker/dealer. I neither provide financial advice, nor make investment recommendations. Nothing you read on this website constitutes a solicitation, recommendation, or promotion of any particular security, transaction, or investment.
I may at times discuss trades or trade setups, but this is meant to be purely a discussion point for entertainment and educational purposes only.
I may at times discuss trades or trade setups, but this is meant to be purely a discussion point for entertainment and educational purposes only.
Monday, August 29, 2011
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Notation
| Wave Degree | Motive | Corrective |
| Grand Supercycle | ((I)) ((II)) ((III)) ((IV)) ((V)) | ((a)) ((b)) ((c)) |
| Supercycle | (I) (II) (III) (IV) (V) | (a) (b) (c) |
| Cycle | I II III IV V | a b c |
| Primary | ((1)) ((2)) ((3)) ((4)) ((5)) | ((A)) ((B)) ((C)) |
| Intermediate | (1) (2) (3) (4) (5) | (A) (B) (C) |
| Minor | 1 2 3 4 5 | A B C |
| Minute | ((i)) ((ii)) ((iii)) ((iv)) ((v)) | ((a)) ((b)) ((c)) |
| Minuette | (i) (ii) (iii) (iv) (v) | (a) (b) (c) |
| Subminuette | i ii iii iv v | a b c |
| Micro | ((1)) ((2)) ((3)) ((4)) ((5)) | ((A)) ((B)) ((C)) |

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