Thanks for posting the charts...I am slightly puzzled about EW count on your chart 2, perhaps you can explain...
Is it not the case that in complete cycle of 5 motive waves which are numbered and corrective waves which are lettered, wave B should not be higher then wave 5 in above example?
In other words after motive wave 5 the corrective waves MUST be contained within 5 waves zone and should not exceed the zone of 5 waves?
If it does then is it considered as extension of 5th wave?
I'm also looking at this for a short next week. My reasons, Double top on CCI, and basically it's had a very good run for a while so has to fall back at some point. Looking for sub 1040 to go short.
Your observations are correct but only in a bull market. Corrective waves are always counter to the main trend, in this case we're in a clear bear market. Therefore, in a bull market waves a and c are impulse and b corrective. In a bear market waves a and c are corrective and b an impulse.
having discussed this with friends about this I am even more confused...as most said that after wave 5 the revsersal must not be lower/higher than wave 5...!!!
Apparently after 5 impulse waves the following 3 are corrective and therefore must form on the reversal side...i.e lower than wave 5 in bullish market and higher than wave 5 in bearish market...This is what most of us thought that must happen for correct EW count....you have confirmed that in your post..
So is there any refrerence you can point where this is explained more..???? as no reference I have confrms with your explanation..I have been scouring everyting I have in my libarary...
Read this thread when people were talking of shorting- had a look at EMG then & found it a strange decision. It looked like it was in a strong uptrend- was going to post but got side tracked.
The guys using Updata should be using their optimised averages-as you can see they gave a buy signal at £ 8.50.
My HO is that it will test the high of January2001 at c. £13.50, but watch for a pullback at the recent high £ 12.78
Man's now got $30bn assets under management and the funds continue to perform well. As have said before; can't see technical signals, just seems like a well run company and a good long term "buy and hold" bet - opinion, etc.
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