S&P 500

25 Mar 2019 ‚óŹ 06:16 AM

Today let me get a little technical for the students of Elliott Wave. There are a few different ways to count this rally but all are corrective so far in the S&P. Number of legs up are 11 and that is 3+4+4=11 an extended corrective move. Now a compex move like this can be marked as a-b-c-x-a-b-c-x-a-b-c = 11 moves. But when we make this combination into a short form for ease of reading we mark it as, w-x-y-x-z where each a-b-c is w/y/z, and each x is a pause in a small a-b-c not visible on this time frame but on a smaller time frame. w-x-y-x-z is 5 waves then, visible on a higher time frame, like a weekly chart. So on a higher time frame we may see that 5 wave move as a trend. For this reason while we may start from a higher time frame to a lower one we have to verify the lower ones for the existence of the structure.

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Recently many people are sending me wave counts online and marking the Nifty as impulsive and I just ask them if they have checked wave 1 to break up into 5 waves. Imagine the Niffy rally from 9951 TO 11762 as a 5th wave, there is no way I can subdivide the rise into 5 waves inside the 5th, so I mark it in blue as A-B-C. Still if someone marks it and they has a debate about it without having looked at the lower degree and verified the possibilities, they he is wasting time. It has become easy for people to express their opinions on a chart with markings, but is a multi time frame fractal. That is way EW is a lot of work.

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