this is the contrarian view, I know. If these silver stocks pop
that would mean that the market is following to the upside and has
not topped out yet. Have a look to the EW count on the chart and be
careful in either direction. If we preach the 4 in the chart this
count is not more valid.
Joseph, just curious how you determined to draw your trendline
where you did. The upper trendline doesn't line up with the
high's in May/June. I always thought when you draw trendline
you take a low or high and connect it to the next low/high.
So in your screenshot, if you took your low of PAAS off
Nov/Dec08 and connected it to the next around March 09 you would
have already broken below the channel. I'm not saying your
trendlines are wrong... just wondering if there is another way to
look at drawing trendline that I'm not aware of. Thanks!
There are certainly different ways to draw trendlines.
In this case the task is to determine the projection of wave
5.
First thing is to find the wave count. You connect Top of wave 1
with top of wave 3 to get the projection line for wave 5. If
you have found the bottom of wave 2 and the bottom of wave 4 you
also can connect these points.
If you would like to get a projection for wave 4, that means
wave 3 has finished and you would like to know the area where wave
4 could go, you just draw a parallel line to the upper trendline.
This line should go through end of wave 2.
In our case it is not relevant if we connect wave 2 and 4 or the
beginning of the wave (bottom) with wave 4 because there is no
projection.
In this case wave 3 of 3 is ending outside of the trendline but
is coming back very fast. Those things happens sometimes. Keep
in mind that wave 3 is normally the strongest wave and often will
go far beyond the upper trendline.
Please keep also in mind that wave 4 will often break the lower
trendline if you are working with parallel lines (connection of w1
and w3, parallel line through wave 2)
Wave 1 and wave 4 should not intersect each other. As soon as
there is an overlap the counting is no more valid.
PAAS could also make a nice pop to $29
Posted by joseph1 on 7th of Feb 2010 at 02:17 am
this is the contrarian view, I know. If these silver stocks pop that would mean that the market is following to the upside and has not topped out yet. Have a look to the EW count on the chart and be careful in either direction. If we preach the 4 in the chart this count is not more valid.
Any comments please, thanks.
your trendlines on PAAS
Posted by sandlamp on 7th of Feb 2010 at 09:18 am
Joseph, just curious how you determined to draw your trendline where you did. The upper trendline doesn't line up with the high's in May/June. I always thought when you draw trendline you take a low or high and connect it to the next low/high. So in your screenshot, if you took your low of PAAS off Nov/Dec08 and connected it to the next around March 09 you would have already broken below the channel. I'm not saying your trendlines are wrong... just wondering if there is another way to look at drawing trendline that I'm not aware of. Thanks!
Jill
PAAS Trendlines
Posted by joseph1 on 7th of Feb 2010 at 11:01 am
There are certainly different ways to draw trendlines.
In this case the task is to determine the projection of wave 5.
First thing is to find the wave count. You connect Top of wave 1 with top of wave 3 to get the projection line for wave 5. If you have found the bottom of wave 2 and the bottom of wave 4 you also can connect these points.
If you would like to get a projection for wave 4, that means wave 3 has finished and you would like to know the area where wave 4 could go, you just draw a parallel line to the upper trendline. This line should go through end of wave 2.
In our case it is not relevant if we connect wave 2 and 4 or the beginning of the wave (bottom) with wave 4 because there is no projection.
In this case wave 3 of 3 is ending outside of the trendline but is coming back very fast. Those things happens sometimes. Keep in mind that wave 3 is normally the strongest wave and often will go far beyond the upper trendline.
Please keep also in mind that wave 4 will often break the lower trendline if you are working with parallel lines (connection of w1 and w3, parallel line through wave 2)
Wave 1 and wave 4 should not intersect each other. As soon as there is an overlap the counting is no more valid.
Hope this helps.
Yes it helps. Thanks. I'm
Posted by sandlamp on 8th of Feb 2010 at 02:50 pm
Yes it helps. Thanks. I'm slowly learning elliott wave counts.
Jill