Wednesday, December 9, 2009

Who Says EW Is Worthless?

9:55 AM (PST) UPDATE:

Or wave iv could be a flat in progress.


12/7/09


12/9/09


By all means EW is not the end all be all analytical tool but here is just one example of EW's usefulness.

I posted the top chart on 12/7. At the time I was expecting an a-b-c corrective to complete either a wave (b) or (ii), with a wave (c) or iii to follow.

Aside from shifting a few labels around, the overall pattern played out as anticipated. Now the question becomes, is this only an (a)-(b)-(c) correction or a new 5 wave impulse down (iii) completed thus far?

Note that the blue line represents the Jul-Nov trendline. As of this posting, it pivoted right at this mark.

A break below would make the case stronger for a 5 wave impulse down. I guess we'll see if it gets broken or bounces higher from here.

4 comments:

  1. A good call on your part, so I hope you made a few bucks. Trading has been very difficult for a while here...

    ReplyDelete
  2. Excellent work. It's playing out well so far.
    5 tomorrow, or do we get punked again?

    ReplyDelete
  3. 6p00d83452e54d69e2,

    thx. this was a good trade. gl!

    ReplyDelete
  4. john,

    thx. let's see what happen by the end of this week. gl!

    ReplyDelete