How is this chart Chrislp? Not suggesting it is an Elliot Wave as it stands, simply asking if it had mirrored what I have drawn now would that satify as being an Elliott Wave pattern?
I would probably say that a W.4 cannot CLOSE within the territory of W.1 would be a more accurate rule for W.4 especially if you are using line charts.
As somebody mentioned earlier, wave-4 cannot enter the price territory of wave-1. Wave-3 cannot be the shortest wave, but is usually the longest wave...especially in stocks. Another guideline...a correction often terminates at wave-4 of 1 lower degree as in your example. Not criticism...just some pointers to bare in mind.
I would probably say that a W.4 cannot CLOSE within the territory of W.1 would be a more accurate rule for W.4 especially if you are using line charts.
Where are you guys getting all your data from? How far back does the charts go? What year?
Thanks Sue
I would be really interested to persue the Elliott Wave Theory with those who have a knowledge and an interest in it. It is a massive gaping hole in my knowledge and now I feel I am actually getting somewhere by talking about it.
However I am really disinclined to continue discussions on this thread as it is now totally off topic.
Is there a thread for Elliott Wave Theory on this forum? If not would someone care to open a thread where further discussions and examples could take place?
The bible of the KISS principle of EW is Dynamic Trading by Robert Miner. You have probably jumped an essential step by going straight to Frost and Prechter.
Also have a google of Carolyn Boroden for Fibonacci and subscribe her free email for daily sample charts.
Type Elliott Wave into search above or just open a thread, there is probably enough on here already
Not entirely absent analysis with the corrections being relatively minor but obviously the megaphone top hasn't been effective on this occasion. Gee whiz I learnt years ago not to resist the American bull.OK, still persisting with Elliott Waves, I am looking at a weekly historical chart of the Dow set in Log scale with some historic Elliott Wave calculations from the book Elliott Wave Principle by Frost and Prechter pg 156 which I have repeated on this chart. The chart in the book cut out about 1980 but the chart I have goes up to the present day 2014. I have added my own Elliott Wave calculations from my still very limited knowledge of EWs.
It is interesting watching history repeat itself and it certainly looks like we are in for a lengthy correction if this current broadening top/megaphone/'jaws of death' shape evolves into its potential pattern outcome.
You will need to press onto the chart to see it clearly.
Gee whiz I learnt years ago not to resist the American bull.
Not entirely absent analysis with the corrections being relatively minor but obviously the megaphone top hasn't been effective on this occasion. Gee whiz I learnt years ago not to resist the American bull.
One month out but not a bad may happen.I have drawn on a twelve year daily chart showing two swing trade calculations. The first (A-B) showed a final outcome of around 21,020 and the second smaller swing trade calculation (C-D), which has yet to break out of its rising wedge pattern, also has an outcome of around 21,020. The upward breakout should it occur, may happen around October 7.
One month out but not a bad may happen.20000 points has some nervousness attached to it with indicators diverging from price (not good reliability). I assume profits are locked in with
a. any further gains being sold into thus catching momentum traders
b. first to blink trips trailing stops
but cause not knowing
c. break 20000 and keep going
p.s. in other words, don't know which game the big hands will play
View attachment 69215
Peter Lynch said:“Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves.”
The Dow is not looking too flash i.m.o.
Looks like a topping pattern followed by impulsive price action lower. If correct this is only the start of a significant correction. More in depth analysis to follow later.View attachment 91144
@Sean K I thought you might be interested in this historic view of the Dow. My IC charts don't have as long a history with the Dow as they do with All Ords. I drew the line from approximately the same year I drew on the All Ords the other day. It won't be an exact comparison but possibly interesting enough. I am not really seeing a massive bubble here. Clearly, there have been bigger lifts above the line. This just looks like it needs a minor correction or possibly a sideway jog will see it back closer to the mean. Interesting to watch.
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