we don't know yet, the whole move up also could have been wave A
of 4, with a B pullback then another C up move; the nature of the
pullback will tell us a lot.
Posted by junkmaylbox on 14th of Oct 2008 at 10:47 am
Matt, one more question please. Does wave 5 have to go lower
than wave 3 when it is complete? In other words, are the lows from
Friday going to be undercut, equal to, or not approached
fully when wave 5 is completed? As rp mentioned, many traders
believe that on Friday we put a bottom, so I am wondering where
should or would wave 5 end upon its completion? Thanks in advance.
-Roy
Roy, even truncated moves retrace 100% to 95% plus.
Remember this pullback might simply be a B wave pullback in wave 4,
which would provide a buying opp, watch those Fib
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Wave4 End?
S&P 60 min chart dynamic NDX 60 min chart dynamic
Posted by yawang36 on 14th of Oct 2008 at 10:06 am
Matt, Steve, do you think wave 4 end?
we don't know yet, the
Posted by matt on 14th of Oct 2008 at 10:08 am
we don't know yet, the whole move up also could have been wave A of 4, with a B pullback then another C up move; the nature of the pullback will tell us a lot.
Wave 5
Posted by junkmaylbox on 14th of Oct 2008 at 10:47 am
Matt, one more question please. Does wave 5 have to go lower than wave 3 when it is complete? In other words, are the lows from Friday going to be undercut, equal to, or not approached fully when wave 5 is completed? As rp mentioned, many traders believe that on Friday we put a bottom, so I am wondering where should or would wave 5 end upon its completion? Thanks in advance. -Roy
no, 5th waves can sometimes
Posted by matt on 14th of Oct 2008 at 10:53 am
no, 5th waves can sometimes truncate, which means they either test the wave 3 highs/lows or get close. This is usually rare but possible
Truncated 5th wave.gif
Wave 5 target
Posted by junkmaylbox on 14th of Oct 2008 at 11:00 am
Is it safe to assume that wave 5 would at least retrace 61% of the upward move?
Roy, even truncated moves retrace
Posted by matt on 14th of Oct 2008 at 11:18 am
Roy, even truncated moves retrace 100% to 95% plus. Remember this pullback might simply be a B wave pullback in wave 4, which would provide a buying opp, watch those Fib