12 replies to this topic

[fib_1618]

I have posted is based on an overriding volume consideration. Huge gap down in the market with HUGE volume. This is a big clue for everything that happens afterwards. That day was the worst breadth day since 1926.

I know that you (and many others) have been using the 2/27 decline as your basis of fact moving forward.

You have to keep in mind that high plurality down days mean something totally different than high plurality up days for a whole host of reasons. In the case of 2/27, you had not only a breadth exhaustion day, but you also had an over reaction by traders not only here in the US, but globally as well. Things like this are going to exasperate what is usual and customary, and as technicians, we're going to have to adjust to these kind of changes as the bull market moves along.

if this is a leading diagonal , I don't seem the impulsive waves within it.

Here you are confusing basic pattern structure from that of Elliott methodology. Remember that Elliott's foundation is based not only on the human condition, but it also serves to identify price pattern structures as it directly relates to breadth and volume in a way that describes the degree of trend. Wedge patterns, for example, can be bullish or bearish solely dependent on the volume characteristics of the pattern, while Elliott takes this example one step further by applying a 3-3-3-3-3 sequence for ending diagonals and 5-3-5-3-5 for those that are classified as leading (otherwise known as a series of one's and two's). Furthermore, there are other nuances that must be entertained for the correct interpretation between the two. These include breadth, volume, and above all else, momentum.

But Elliott aside, and going back to the root of the discussion, without daily volume characteristics to help in ascertaining which pattern is what it is, from that of what it isn't, is paramount to coming to a better conclusion of what's being traced out. Without this important information, "looks" can be quite deceiving, and can be quite monetarily frustrating when attempting to trade off this same information.

Fib

[skott]

fib, I've been around quite awhile so leave the condescending tone at the cyber door ok? you contradict your self with your answer and it would seem you don't know as much as you think. You say a leading diagonal is a 5,3,3,3,5. You should know the 5 stand for 5 waves and a 5 wave structure is an impulse wave. I said I don't see them. Also, leading and ending diagonals are both bearish. nuff said no more comments

[fib_1618]

fib, I've been around quite awhile so leave the condescending tone at the cyber door ok? you contradict your self with your answer and it would seem you don't know as much as you think. You say a leading diagonal is a 5,3,3,3,5. You should know the 5 stand for 5 waves and a 5 wave structure is an impulse wave. I said I don't see them. Also, leading and ending diagonals are both bearish. nuff said no more comments

Well, I'm sorry that you've decided to read my comments as condescending - they were certainly not presented in that fashion.

You may want to reread the blue book though - specifically the section that covers "Type 2 Diagonals" - and I will leave it to you (and others) as to my knowledge (or lack thereof) on the subject matter...or maybe if you read something in a book by an authoritative figure it won't sound as condescending as being from one who doesn't have (or need) such notoriety.

Fib