5 replies to this topic

[eminimee]

http://stockcharts.com/c-sc/sc?s=$NDX&p=D&yr=4&mn=6&dy=0&i=p22951804465&a=44242262&r=7624.png

[imhotep]

http://stockcharts.com/c-sc/sc?s=$NDX&p=D&yr=4&mn=6&dy=0&i=p22951804465&a=44242262&r=7624.png

With this caveat, I'm by no means an Ellotician. I was under the impression that one of the primary characteristics of a 4th wave, was consolidation. The 4th wave you have drawn, I believe, shows a v bottom in place, and hence would not be construed as a true consolidation. Shouldn't it be labeled where you have labeled the "red" C? I'm not trying to be critical, but only seeking an education. All I ask, is for help in attaining the education.

[eminimee]

imhotep...could you show me or tell me where you read about "consolidation" and "forth waves"....I'd like to put in context. The way you are explaining it doesn't make sense to me. How do you define "consolidation"?

RE: the 4th moved...that is another count of mine but changes the very bullish picture considerably.

http://stockcharts.com/c-sc/sc?s=$NDX&p=W&yr=4&mn=3&dy=0&i=p07082827799&a=91599710&r=3273.png

[imhotep]

Teaparty - I'll look for it over the weekend. Perhaps the chief, or someone else would care to chime in on this topic. Again, I may be mistaken, but I thought I did read, where the 4th is a consolidation wave. I haven't read Prechter/Frost, so I do not know what they portend. I just ordered their book the other day, and will hunker down with it sometime this month. I've either been saving the best, or the boringest for this time. Sorry for my naivete onthe subject. In your second chart, if the 4th is, as you have now labeled, I think the 5 would now need to be labeled as an "a"?

[eminimee]

"I think the 5 would now need to be labeled as an "a"? Why would you have an A coming out of a 4th wave bottom?

[dcengr]

"I think the 5 would now need to be labeled as an "a"?


Why would you have an A coming out of a 4th wave bottom?

If you've got this NDX retrace as an "A", then many should believe that this is just a temporary pull back only. And would setup for the phony "B" wave.

So.. we should be seeing many trying to buy the dip here. Well on this board, I think more people are shorting this down, so the evidence is not from this board.

Dang even cramer is telling people to sell techs. On the other hand, "B" waves are phonies and should go up on deteriorating breadth.. maybe this is a "B" wave.. certainly the ad cumulative was lagging. Odd-lot cumulative was pretty high too.

That would put the recent price decrease as a "C" wave, supposedly capable of wiping out the entire "B" wave (which its almost done), and often goes down as low as 1.6x the length of B..

Ofcourse that would apply to this leg only... not the entire bull market count as you've got labeled.