not wave 5

    SPX 10 min observations

    Posted by keani4me2000 on 10th of Feb 2009 at 02:31 pm

    i don't see a wave 5 only 3 down

    come on guys, you have

    Posted by matt on 10th of Feb 2009 at 02:37 pm

    come on guys, you have waves within waves within waves, it was a wave 5 of a smaller degree, the larger time frame is still wave 3, I stated that earlier

    A big picture?

    Posted by junkmaylbox on 10th of Feb 2009 at 09:09 pm

    I am totally confused with his labeling of the waves on the <a href="http://breakpointtrades.com/file.php?id=5001">chart</a> that he posted.

     

    I am seeing 5 waves down, like Matt alludes. I am also seeing 5 waves up within the rising wedge. I am confused as to what the market's secondary trend is (the primary is obviously down), based on that <a href="http://breakpointtrades.com/file.php?id=5001">chart</a> .

    If move down looks impulsive -- like the one shown here -- and has 5 waves, it is wave 1, 3, or 5 down (if the secondary trend is down), or it is wave 2 or 4 down (if the secondary trend is up). Matt labeled the move as wave 3 of 5, so he must have meant that November lows were only at the end of wave 3 then (I am trying to figure out his assumption implied in his labeling). This would give a bearish interpretation of his chart, and one should be positioned short then. Is there any bullish scenario, where one could have wave 3 of 5 (I cannot think of any)?

    Next, what do big 1 and 2 inside the wedge mean, and how were they derived?

    Lastly, a move that exceeds the 61% retracement of the preceeding move cannot be corrective. Is this true or false, or it depends? We closed today below 830, and 61% retracement was at 840.

    Comments are welcome. Thanks in advance!

    PS Matt's later posts provided more insight, however I did not have them at the time. So any solution must be based only on the data in this posting, please.

    Now you know why I

    Posted by unsane on 10th of Feb 2009 at 09:26 pm

    Now you know why I don't trade EWs.

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