Steve, Could you please draw a completed sample pattern for the
leading diagonal? I could visualize it for an up-sloping channel,
like we had in January on $SPX. With a down sloping channel
it's a bit different. I view this leading diagonal as a C down, or
{1} of 3 down. I am not sure what another bullish count -- besides
C down -- it could fit into. Thanks!
Steve, Is it (the LD) complete now? I am missing the
reference of "diagonal". I am sorry but this is confusing. Without
using Elliotese, this looks like a distribution pattern after the
uptrend -- through the up-channel -- was completed. Now it
should form some sort of a rectangle before breaking in earnest to
the downside and retracing the most of its advance, like you said.
That would be a retest of the lows at 1044 or a test of of the
MA(200). Thank you for your time!
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Another Alternative View
Posted by steve on 25th of Feb 2010 at 04:15 pm
http://stockcharts.com/h-sc/ui?s=$SPX&p=30&yr=0&mn=1&dy=15&id=p81404275136&a=159075276&listNum=61
This is one way to view things when wave 4 overlaps wave 1. Typically, leading diagonals are DEEPLY retraced (like 60-80%).
This could also be viewed simply as a corrective decline that has completed or is still unfolding as with perthx described below.
I like it, so many
Posted by perthx on 25th of Feb 2010 at 04:41 pm
I like it, so many alternative ways to count the markets to choose from...bring on the CRASH!! Oh ok just the next leg down will do!!
Steve, Could you please draw
Posted by junkie on 25th of Feb 2010 at 04:38 pm
Steve, Could you please draw a completed sample pattern for the leading diagonal? I could visualize it for an up-sloping channel, like we had in January on $SPX. With a down sloping channel it's a bit different. I view this leading diagonal as a C down, or {1} of 3 down. I am not sure what another bullish count -- besides C down -- it could fit into. Thanks!
A good description of the leading diagonal pattern
Posted by junkie on 26th of Feb 2010 at 09:29 am
http://thepatternsite.com/EWleadingTriangle.html if anybody wishes to read about it
Junkie - the LD is
Posted by steve on 25th of Feb 2010 at 05:01 pm
Junkie - the LD is shown on the chart with the pink trendlines.
Steve, Is it (the LD)
Posted by junkie on 25th of Feb 2010 at 05:13 pm
Steve, Is it (the LD) complete now? I am missing the reference of "diagonal". I am sorry but this is confusing. Without using Elliotese, this looks like a distribution pattern after the uptrend -- through the up-channel -- was completed. Now it should form some sort of a rectangle before breaking in earnest to the downside and retracing the most of its advance, like you said. That would be a retest of the lows at 1044 or a test of of the MA(200). Thank you for your time!