Wednesday, July 29, 2009

Is It Still A Wave iv Triangle?

Look at today's pattern. I did not change anything from yesterday's chart ( except for the inclusion of the red abc labels and I moved where I thought subwave b should be for the triangle. These changes were made when I highlighted the line graph, which made things look a little clearer.

Notice when comparing both charts how the projection (my red lines) for wave e almost played out to a tee? As choppy as the waves were today and the numerous questions about the pattern, I will have to say my triangle count for wave iv is still in play.

We even had a falling wedge/contracting triangle breakout at the close. This lines up well with the conclusion of wave e of the triangle with the final thrust up to complete minute v.

In fact, in EW Principle, pg 49 on triangles, states that "Wave E can undershoot or overshoot the A-C line, and in fact, our experience tells us that it happens more often than not."

I honestly was concerned when price for what I believed to be wave e violated the A-C line but now find solace in this statement from the book.

What an interesting day it has been.


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