Wednesday, May 19, 2010

5/19 10:30

Wave ii  ended quickly are we are now in wave iii or (iii):


Last night's post contained the bigger picture wave count.

2 comments:

  1. Steve

    Trying to understand how the markets work. So buy and sell orders come in waves, if the market is going down you have more sellers then buyers, in come the sell orders so the wave starts down, then come the buyers bidding the price back up, up goes the wave. When this process is over in comes another wave down of sellers and the process starts over, 5 waves down then a 3 wave corrective wave up before the sellers start another 5 wave down or the market at this point could change direction in were you would have more buyers then sellers, 5 waves up and a 3 wave down corrective wave. Do I understand this correctly?

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  2. Impulse waves are the trend at whatever degree. They are the 5-waves. Corrective waves are against the trend and come in 3-waves. Currently trend is down at all degrees except for sub-minuette. As a short-term trader if trend is down I try to catch tops of micro-degree 3-waves within sub-minuette 5-waves. Sub-minuette are the i, ii, iii, iv, v labels in the wave count today. As a longer-term trader I try to catch the tops of minute-degree 3-waves within minor-degree 5-waves. Minor-degree are the 1,2,3,4,5 in the DJI daily chart posted last night. So, right now we are in a Minor-degree 5th wave (if the higher degree labelling is correct).

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