Mentorship

Mentorship

Dow

27 Oct 201506:20 AM

Last week I posted an article showing channels on US charts. Now note that most were on an arithmetic scale chart. Meaning where 1cm=100 points and so on. A log scale chart is where 1cm=1%, for those who are new to it. Well what is the relevance. Ãt is my belief that channels that form perfectly on an arithmetic scale do so during bearish periods. While perfect channels form on a log scale for long term bullish trends. Now usually for a long term trend you would use a log scale. But on this chart and most US charts even after 6 years the arithmetic scale appears to work best. So I continue to try and fit some kind of bearish count. Now since prices had reached the upper end of the channel for months I wrote that this was the final top in wave C up. But the lower channel did not break. So something is pending on the upside? Maybe maybe not. But it is possible. If so this is what might be the case. Wave 5 of C will somehow form. See the pace of the recovery from the low in wave 4. If the pace continues wave 5 would complete quickly in one powerful move itself. EWI is also exploring this possibility at least on one US index, the Nasdaq.

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