W4 abcde or W5

There are two scenario on KLCI at the moment.

i ) If you truly believe jibkor 20Bil valuecap ada ooommpphhh... last upleg wave E should hit around 1720 area.

2) Fed rate hike end of the year, China economy still not turning around, 1mdb issue dragging on, Ringgit appreciated against other currencies.... oooppss... I mean depreciated...

Here is scenario 2 

China factory gauge reaches new low in September

BEIJING--A preliminary measure of Chinese factory output in September was the lowest since the financial crisis, adding to a parade of weak data that is increasingly eroding hopes that China's slowdown would stabilize in the second half.
Chinese stock markets fell on the news, which follows weak readings in August for fixed-asset investment, industrial production and exports as Beijing struggles to meet its growth target of about 7% this year, the slowest pace in 25 years.
"New export orders have really collapsed. It means global trade is facing headwinds, and even China can't escape that," said HSBC economist Frederic Neumann. "It's not so bad that we need to hit the alarm button, but the decline in the economy is evident."

The preliminary Caixin China Manufacturing Purchasing Managers' Index, a gauge of nationwide manufacturing activity, fell to 47.0 in September, compared with a final reading of 47.3 in August, Caixin Media Co. and research firm Markit said Wednesday. The reading was the lowest since March 2009, when China was grappling with the global financial crisis.
A reading above 50 indicates expansion from the previous month, while one below 50 indicates contraction.
The Shanghai Composite Index was down around 2% in midday trading.
China has announced a flurry of infrastructure plans in recent months, browbeaten local officials to spend their full budgets and tried to ease funding constraints for highway, rail and other projects. The infrastructure subindex of fixed-asset investment data in August grew 19.9% year-over-year in August compared with 16.4% in July.
But this hasn't been enough to counteract a sharp and protracted fall in real-estate investment. And local-government spending remains weak given Beijing's effort to contain shadow banking and fight corruption.
"The situation is definitely worsening in September," said Zhang Yiping, an economist with China Merchants Securities. "China's economy is facing more downward pressure now."
Subindexes for output, new orders, new export orders, employment, prices and inventory in the Caixin data all weakened, suggesting that companies covered by the survey are struggling across the board. "The corporate sector is pretty pessimistic on the outlook for future demand," said HSBC economist Ma Xiaoping. "All those government ministers are tasked to do what they can to try and revive the economy, but all those measures are not very effective," she added.
Retail spending, however, has remained strong, growing by a better-than-expected 10.8% in August from a year earlier compared with July's 10.5%.
The weak outlook for the nation's factories puts more pressure on the government to step up fiscal and monetary stimulus between now and the end of the year to reach its target. Economists said China has more leeway to reduce interest rates given that the U.S. Federal Reserve held off on an anticipated rate increase. And it will likely cut required bank reserves to stem an outflow of capital seeking higher returns abroad.

"I think they still have plenty of room to ease monetary policy," said BBVA Research economist Xia Le. "I think we'll see it stabilize in the fourth quarter."

Armada 23-9-2015

KLCI vs Dows

DJIA 22-9-2015

U.S. stocks tumble as Fed sows fear and confusion

U.S. stocks sank Friday, with the S&P 500 and the Dow Jones Industrial Average closing down for the week, as Federal Reserve’s decision to leave interest rates unchanged fueled fears about global economic growth.

The central bank cited concerns about the global economy and a lack of inflation growth in its Thursday decision to leave interest rates unchanged.

“Many are confused by the outcome of the recent Fed meeting,” said Kent Engelke, chief economic strategist at Capitol Securities Management. “Markets hate confusion and lack of clarity.”

The S&P 500 SPX, -1.62%  skidded 32.16 points, or 1.6%, to close at 1,958.08 for a weekly loss of 0.2%. All S&P 500 sectors finished lower, led by energy shares.

The Dow Jones Industrial Average DJIA, -1.74%  dropped 289.95 points, or 1.7%, to close at 16,384.79 with all 30 components in the red. The blue-chip index edged down 0.3% for the week.

The Nasdaq Composite COMP, -1.36%  shed 66.72 points, or 1.4% to 4,827.23. The tech-heavy index is the only one of the three major stock barometers to finish out the week higher with gains of 0.1%.

Trading volume was elevated, with 5.74 billion shares changing hands on the New York Stock Exchange, due to “quadruple witching,” which means the expiration of various stock-index futures, stock-index options, stock options and single-stock futures. Friday is the second highest volume day of the year.

“By not raising the rates, the Fed is now fanning global growth fears,” said Steven Wieting, global chief investment strategist, at Citi Private Bank.

“The key for future market action depends largely on whether or not the Fed had any good cause to worry about international developments,” Wieting said.

These 5 charts show why the Fed is fretting about emerging markets.

Weak oil prices and investors rotating into bonds as Treasurys rallied in wake of the Fed’s decision also pressured stocks, said Ian Winer, director of equity trading at Wedbush Securities.

October West Texas Intermediate crude CLZ5, -3.73%  skidded 4.7% to settle at $44.68 a barrel. Treasury yields fell and prices rose with the yield on the two-year Treasury note TMUBMUSD02Y, +0.63%  dropping 6.7 basis points to 0.678%. The 10-year Treasury note yield declined 5 basis points to 2.14%.

“We are not surprised to see the selloff in the market, as investors are realizing that the zero-rate policy for the past seven years has not resolved any issues in the economy,” said Bruce Bittles, chief investment strategist at R.W. Baird & Co.

W4 ABC

14-9-2015

10-9-2015

7-9-2015 ( INVALID)

    6-9-2015

corrective 5 waves counts

14-9-2015

Malaysia's Najib delivers RM20b boost for stock market

KUALA LUMPUR (Sept 14): The Malaysian government will inject 20 billion ringgit (US$4.6 billion) into a state investment firm to shore up the stock market, Prime Minister Najib Razak said on Monday, in a bid to boost confidence in a country reeling from a political scandal.

Najib has rebuffed calls for him to quit over a corruption scandal raging round heavily indebted state fund 1Malaysia Development Berhad (1MDB), and for his handling of the economy as the ringgit currency slumped to its weakest levels since the Asian financial crisis nearly 18 years ago.

The embattled prime minister announced some new measures on Monday at a news conference, and offered reassurances meant to improve sentiment.

He said the equity investment firm, ValueCap, would be given funds to invest in undervalued Malaysian companies.

"As such, the government will reactivate ValueCap with funds of 20 billion ringgit," he told reporters at the Prime Minister's office.

The prospect of government support for the share market helped lift Malaysia's benchmark stock index 1.7% to 1,630 points in afternoon trade, but it was still 8.7% weaker compared with the start of the year.

A Kuala Lumpur-based fund manager with a bank-backed insurance firm told Reuters that the move bode well for the share market, where foreign holdings are relatively low. But the ringgit was largely unmoved.

Najib also announced that the factory sector would be exempted from import duties until the economy recovers from a slowdown, but did not specify which specific sectors would benefit.

The ringgit's fall reflects a deterioration in Malaysia's trade position because of falling prices for its liquefied natural gas and commodity exports. But capital outflows accelerated in July as the political storm over 1MDB worsened.

Najib's failure to adequately explain how 1MDB racked up $11 billion debt, or who deposited over US$600 million in a bank account held in his name has led to mounting public unease over his leadership.

Najib has denied wrongdoing. He said on Monday that the rationalisation plan for 1MDB was on track. The fund is in the process of divesting its energy and real estate assets.

He also sought to allay concerns over the ringgit.

"The ringgit's decline is not expected to have adverse impact on government debt as 97% of the debt is denominated in ringgit and mostly funded by domestic sources," Najib said.

The country's international reserves have fallen to US$94.7 billion, more than US$37 billion less than a year earlier, worrying some economists.

Reflecting those concerns, Najib called on state-linked firms to bring funds home.

"Companies have profited from investments made (abroad) and now it's time to bring those funds back home," Najib said.

He also reiterated that there were no plans to introduce capital controls, adding that the government was on track to achieve fiscal consolidation target for 2015.

(US$1 = 4.3130 ringgit)

A of Wave 4

10-9-2015

8-9-2015 ( INVALID )

One last leg up to complete C wave. Possible target at 1603. 

Primary trend still down. Trend reversal will happen if CI manage to break previous high at 1660.

Wave notes

Impulse Waves:

• Extension:  in impulses, usually just one of waves 1, 3 or 5 extend.  Wave 3 is the most likely to extend.  Rarely, both 3 and 5 extend.  Extensions can occur within extensions. For instance 3 of 3.  Sometimes, at the end of an impulse in which one of the waves extended, there are 9 total waves, and it is difficult to determine which wave extended.  There also can be extensions within extensions.  5 in extension manifests itself as 9, 13, 17, etc.  3 in extension can appear as a 7, 11, 15, etc.  If neither wave 1 or 3 is extended, expect wave 5 to extend, especially if volume is greater in the 5th than the 3rd.
• Truncation:  when the 5th wave does not reach beyond the 3rd wave.  Occurs most often after a particularly strong 3rd wave.  The wave 5 must still contain the necessary 5 subwaves.  The message truncations send is that there is tremendous pressure to start the new trend.  Expect big moves after truncations.
• Diagonal: subdivides 3-3-3-3-3.  Notated with digits 1-5.  Signals an imminent major trend reversal.
  • An ending contracting diagonal appears at the termination point of larger movements, most often as wave 5, and rarely as wave C.  An expanding diagonal has only occurred only once in the stock market.  Wave 5 often over-shoots, and upon rare occasion, falls short of its resistance trendline.  If it does fall short, the reversal will be more severe.  Ending diagonal triangles indicate exhaustion of a larger pattern that moved too far too fast.  Ending diagonals are usually followed by a quick thrust which retraces to the starting level of the diagonal.
  • A leading diagonal (3-3-3-3-3) occasionally appears in the wave 1 (or A of zigzags) position.  There are only two historical instances where there was a diagonal triangle Type II which sub divided 5-3-5-3-5, in which case is was a wave A of a zigzag ABC bear market rally that was preceded and followed by strong downward movements.  Beware:  what appears to be a leading diagonal is usually a 1-2-1-2 instead.  Leading diagonals are typically deeply retraced, and if in wave 1 position, are typically followed by a zigzag retracement of 78.6%.
  • Wave 3 is never a diagonal.
• Most Typical Impulse Fibonacci Ratios/Multiples (from Chapter 4: Ratio Analysis):
  • If wave 1 is extended, expect the net of wave 2-5 to be .618 x wave 1
  • Wave 2 = 618 or .5 x wave 1
  • If wave 3 is extended, waves 1 and 5 tend toward equality.  A .618 relationship is next most likely.
  • Wave 3 = 1.618 or 2.618 x wave 1
  • Wave 4 = .382 x wave 3
  • Wave 4 (net) typically relates to its corresponding wave 2 (net) by a Fibonacci ratio.
  • Wave 5 = wave 1, or .618, or .382 x the net of waves 1 thru 3.
  • If neither wave 1 or 3 is extended, expect wave 5 to be 1.618 x the net of 1-3.
  • The time to complete waves 1 thru 3 = the time to complete the end of 3 to the end of 5.

Corrective Waves:

• Corrective wave are more varied than impulse waves, contain choppy overlapping waves, and are more difficult than impulses to count correctly in real-time.  They are generally not high-confidence areas in which to make predictions.  Avoid things that can hurt you!
• Corrective waves are never 5’s.
• An initial 5-wave move against the larger trend is never the end of the correction, only a part of it.
• Corrective moves come in two styles, which almost always alternate in waves 2 & 4:
  • Sharp: steeply angled, made up of a zigzag, or double or triple zigzag.  Usually .618 or .500.
  • Sideways: horizontal in nature.  Consists of a flat, a triangle, a double three, or a triple three.  Triangles never appear alone as wave 2.  The final move of sideways corrections always “correct” the extreme of the preceding wave by at least one pip., and typically contain a movement back to or beyond its starting level, often creating a new high or low during the phase.
• Corrective patterns fall into 3 categories:
• Zigzag (5-3-5) sharp.  Most common in wave 2’s.  If the 1st zigzag doesn’t retrace sufficiently, there may be a double or triple zigzag.  Wave B will not surpass the origin of A.  C moves well beyond the extreme of A. Zigzag and double and triple zigzags produce a persistent move against the larger trend.
• Flat (3-3-5) sideways.  Most common in wave 4’s.   There are 3 types:
  • Regular Flat: B terminates near the start of A. C terminates slightly beyond the end of wave A.
  • Expanded (Irregular) Flat: (actually far more common than reg. flat). B terminates beyond the start of A, and C ends more substantially beyond the end of wave A.  Bear market expanded flats may be referred to as an inverted expanded flat.
  • Running Flat: (very rare).  B terminates well beyond the start of A, but C falls short of the end of wave A.  BEWARE:  if B breaks down into 5 waves, it is more likely a wave 1 of an impulse of the next higher degree. A Running Flat (sometimes referred to as an Irregular Flat – Type II by Prechter) essentially exhibits a failure (truncation) in wave c, and although rare, usually appears as a wave 2, because wave 3 just can’t wait to get underway.
• Triangle (3-3-3-3-3) sideways.  Triangle waves are notated with letters A through E, and consist of 5 overlapping waves.  Indicate a triangle on your chart by drawing trendlines connecting A & C, and B & D.  Triangles take up a lot of time.  Wave E will likely over or under-shoot the trendline.  If E overshoots, it cannot surpass the extreme of C.  If it does, it is not an E wave in a triangle.  At wave E’s end, all triangles affect at least a one pip corrective result from the end of the preceding wave (wave 3, for instance).  There is usually a post-triangle terminal thrust from the extreme of E equal to the width of the trendlines at the starting point of the triangle.  Most subwaves are zigzags, although wave C is often a more complex double zigzag.  One of the subwaves (usually E) can itself be a triangle, which results in labeling of A-B-C-D-E-F-G-H-I.  Triangles always occur in a position prior to the final wave in the pattern of one larger degree, most often wave 4 of an impulse, but also B of an ABC, or the final X in a double or triple three.   A triangle may also occur as the final actuary pattern in a corrective combination.  Triangles never appear alone as wave 2. If wave B makes a new high or low, it is called a running triangle.  There are 3 types of triangles:
  • Contracting – the upper trendline is sloping down, the other up.  (If B overshoots A, it’s called a running contracting triangle).
  • Barrier (either the upper or lower line is virtually horizontal).  The horizontal line will be the line that will be broken after the E wave is complete.
  • Expanding ( the upper & lower trendlines diverge, the upper sloping up, the other down). Wave E must move beyond the extreme of C in Expanding Triangles.
• There can be combinations of corrective patterns.  Combinations are generally horizontal in nature.  Each pattern within the combination is connected by a 3-wave corrective movement (most often a zigzag) labeled X.  Each “three” in combinations can be a zigzag or flat.  Triangles only appear as the final wave in combinations.  The forms generally alternate.  There is never more than one zigzag or triangle in a combination.  The two types of corrective combinations are:
  • Double three (labeled W-X-Y).  Extends the duration of the correction.
  • Triple three (labeled W-X-Y X-Z) (rare).  Extends the duration even further.
• If there are a number of similar waves in a row that are difficult to label, remember that a double zigzag will have 7 waves, and triple zigzag has 11.
• Sometimes volume spikes at the end of corrections, but more often it drops off.
  

Chapter 2 – Guidelines of Wave Formation:

(Guidelines aren’t rules, they guide to what is probable)

Alternation: (expect a difference in the next expression of a similar wave):

• If wave 2 is sharp, expect wave 4 to be sideways, and vice versa, except inside triangles, where alternation of 2 & 4 does not occur.
• If wave 2 is sideways, a triangle can appear as wave 4 and still fulfill alternation, but this less likely.  (Triangles alternate witheverything else).
• If wave 2 is simple, expect wave 4 to be a complex combination, and vice versa.
• One of the 2 corrective waves within an impulse will likely retrace the entire last impulse (of one lesser degree?), the other will not.
• Extension is an expression of alternation. Typically wave 1 is short, 3 long, and 5 short.  If wave 1 is extended, 3 and 5 will likely not be extended.  If 1 and 3 are not, 5 will likely be.
• Within corrective ABC waves, if A is a flat, expect B to be a zigzag and vice versa.  If A is simple, expect B to be a more complex combination, and C even more complex, or, the complete reverse: most complex-complex-simple, although this is not as common as increasing complexity.
• Rich Swannell, in his Elite Trader Secrets book contends that alternation only takes place 61.8% of the time.  He contends that the culprit causing this somewhat low percentage is that when wave 2 is sideways, there is a 78% chance that wave 4 will be sideways as well!!  In his 20 years of research, this is the only significant statistical anomaly he found comparing realtime analysis to Elliot’s original guidelines.

Depth of Corrective Waves:

• Corrections (especially 4th waves) tend to retrace to within the span of the previous 4th wave of one lesser degree.
• If the 1st wave of a sequence extends, the correction following the 5th wave of the sequence will retrace no further than the extreme of wave 2 of a lesser degree (wave 2 of the 5th).
• After 5th wave extensions, the ensuing correction will likely be sharp and swift, and will end near the extreme of wave 2 of the extension.  This does not apply when the market is ending a 5th wave simultaneously at more than one degree.

Wave Equality:

• 2 of the motive waves in a 5-wave sequence tend toward equality in time and magnitude.  If equality is lacking, a .618 relationship in next most likely.  Usually wave 3 is extended, so wave 1 and 5 are often nearly equal in amplitude and duration.
• Waves A and C of a correction tend toward equality.  C = 1.618 x A is next most likely.

Channeling:

• A parallel trend channel typically marks the upper and lower boundaries of impulse waves.
• When wave 3 ends. Connect 1 & 3, and place a parallel line thru 2.  This provides an estimated boundary for wave 4.  When wave 4 ends, connect 2 & 4, and place a parallel line thru 3.  This will forecast the end of wave 5.  If wave 4 moves out of the channel, expect wave 5 to be a throw-over. (WG)  Alternative method for projecting the end of wave 5:  if wave 3 is abnormally strong (vertical) and wave 4 is sideways, connect 2 and 4, and draw a parallel line that intersects the extreme of wave 1.  This will project the end of wave 5.
• Trendlines can also help with zigzags.  Connect the origin of A with point B, and place a parallel line through point A.  This will project the end of C. (Wayne Gorman)
• Remember:  It’s not over until wave 5 of 5 of 5 is finished.  The wave count takes precedence over channel lines and projected Fibonacci targets.
• Wave 5’s can “throw-over” or “throw-under”, depending on volume.  During a “throw-over”, it is difficult to identify waves of smaller degrees, as channels lines are penetrated.

Volume:

• Late in a corrective phase, a decline in volume often indicates a decline in selling/buying pressure, and coincides with a turning point in the market.
• Of the impulse waves, 3rd waves almost always exhibit the greatest volume.  If volume during the 5th wave is as high as the 3rd, expect an extended 5th wave.
• Volume during corrective patterns will generally dry up during triangles and combinations, and will climax during A waves, and during wave 3 of C.

The “Right Look”

·    If wave 4 terminated well above the top of wave 1 in a 5-wave move, it must be labeled as an impulse.

·    It is extremely dangerous to accept a wave count that represents disproportionate wave relationships or a misshapen pattern.

·    The right look may not be evident at all degrees of trend simultaneously, so focus on the degrees that are the clearest.

·    You need short term charts to analyze subdivisions in fast moving markets, and long term charts for slowly moving markets.

·    When re-working your count, always start from a significant bottom. (WG)

·    Movements with the larger trend subdivide into 5.  Movements against the larger trend subdivide into 3. (DA)

·    The belief that there is only one direction the market can take, and the refusal to consider alternatives is a recipe for trouble. (DA)

·    Its not over until the 5th of the 5th of the 5th of the 5th is complete.  Confirmation that a trend change has occurred of a certain degree comes with a 5-wave move of one lesser degree in the opposite direction.

Wave Personality:

• At times, more than one wave count is admissible, making wave personality invaluable in determining the preferred count:
• 1st Waves: unfold in a 5-wave impulse.  Part of a basing process.  “Maybe we’ll actually survive this after all.”  Most, however do not believe that the trend has changed.
• 2nd Waves: unfold in a 3-wave corrective fashion, and usually deeply retrace wave 1.  The masses are convinced that the old trend is still in force, and pessimism is even worse than the origin of 1.  “Here we go again.”  Wave 2’s end up exhibiting low volume/volatility, with sentiment (the put/call ratio) at its low.  Wave 2’s provide a great trading opportunity!
• 3rd Waves unfold as a 5, and are strong, broad, and steep.  Optimism returns.  Economic fundamentals improve.  At about the middle of wave 3, there is mass recognition that a new trend is underway.  This is when volatility is at its highest.  MACD will usually confirm wave 3 peaks.
• 4th Waves unfold as a 3, and are predictable in depth and form due to alternation from the 2nd wave.  They are very likely sideways affairs, and are building a base for the final 5th wave.  They are accompanied by a surprising disappointment because the advance did not continue.
• 5th Waves unfold as a 5, and are less dynamic than wave 3’s, unless the wave 5 is an extension.  Volume is less than wave 3, but optimism/pessimism is at its highest, although fundamentals aren’t as good.  Wave 5’s are typically accompanied by MACD divergence.  FYI:  wave 5’s in commodities are stronger than wave 3’s, and are driven by fear.
• A Waves unfold as 5’s if the beginning of a zigzag, or 3’s if the beginning of a flat or triangle.  Arrogance and complacence is lingering.  Most are convinced that it is just another pullback before the larger trend continues, although they are often sharp, and can retrace more than the previous impulse wave.  A waves following extensions on commodities are often crashes.  A waves do not kill the hopes associated with the old trend though.  MACD will be deeper at the end of A waves than it was during the previous waves 2 or 4.
• B Waves unfold as 3’s, and are sucker plays, especially in expanded/irregualar flats.  The masses believe the up trend has resumed.  Wave B’s are usually zigzags, and the next most likely is a triangle.
• C Waves unfold as 5’s (unless part of a triangle, or rarely a diagonal), and are strong like a wave 3.  The illusions held through A and B quickly evaporates into fear.  Near the end of C, the corrective phase will be widely mistaken for a new overall trend.
• D Waves are 3’s are accompanied by expanding volume, and are phonies, like wave B’s.
• E Waves are 3’s, and are often mistaken as a kickoff of a new trend (because of the typical throw-over).  News often coincides with the overshoot, and caused the masses to join the wrong side of the trade at the worst moment.
• X Waves connect corrective waves into combinations, and consist of any type of 3 wave corrective structure, but are most often a zigzag. An X, being a 3 wave move, signals that the correction is not over yet.

Fibonacci Relationships (from Chapter 4: Ratio Analysis):

• Fibonacci relationships of waves moving in the same direction are more important than Fibonacci retracements.
• The most typical corrective Fibonacci Ratios are:
  • In a zigzag, C = A, or 1.618 x wave A, or .618 x wave A (in that order)
  • In a regular flat, A, B & C are each nearly equal
  • In an expanded flat, B = 1.236 or 1.382 x A
  • In an expanded flat, C = 1.618 x A (very common!)  Sometimes C will overshoot A by .618 x A.
  • In a contracting triangle, B = .618 x A, C – .618 X B, and D = .618 x C.
  • In an extremely rare expanding triangle, the ratio is 1.618.
  • In double and triple corrections, the net travel of one simple pattern related to the next by equality, or if one of the 3’s is a triangle, by .618.
• Rich Swannell’s research showed that stock market wave 2’s are most likely to retrace wave 1 by 38.2%, and are about twice as likely to retrace 38.2% than 61.8%.  2nd waves are widely varied in the percentage that they retrace.
• Wave 4 retracements of wave 3 are generally more predictable.  A .382 retracement is most common, and as little as a .236 is next, especially if it is a wave 4 of  larger wave 3.  Also, wave 4’s very often retrace to the about the end of the previous wave 4 of a lesser degree, for instance wave 4 of a larger wave 3.
• The 5th wave, if the longest, typically travels 1.618 the distance of from the start of wave 1 thru the end of wave 3.
• Wave 3 will often be 1.618 x the length of wave 1.  2.618 is also common.
• Wave 5 will often be equal to wave 1 if wave 3 is extended.
• Prechter, despite mighty efforts, has not been able to produce anything useful as far as Fibonacci time relationships.  Check out Corolyn Boroden or Glenn Neely’s work for that.

Percentage Retracements and Extentions (from Rules and Guidelines – p. 86-91)

• In a diagonal, waves 2 & 4 each usually retrace .66 to .81 of the preceding wave.
• In a zigzag, wave B typically retraces 38-79 percent of wave A.
• In a zigzag, if wave B is a running triangle, it will typically retrace 10 to 40 percent of wavc A.
• In a zigzag if wave B is a zigzag, it will typically retrace 50 to 79 percent of wave A.
• In a zigzag, if wave B is a triangle, it will typically retrace 38 to 50 percent of wave A
• In a flat, wave B must retrace at least 90 percent of wave A.  This is a rule.
• In a flat, wave B usually retraces between 100 and 138 percent of wave A.
• In a flat, wave C is usually 100 to 165 percent as long as wave A.
• In a flat, when wave B is more than 105 percent as long as wave A, and wave C ends beyond the end of wave A, the formation is called an expanded flat.
• In an expanding triangle, subwaves B, C, and D each retrace at least 100 percent but no more than 150 percent of the previous subwave.
• In an expanding triangle, subwaves B, C, and D usually retrace 105 to 125 percent of the preceding subwave.

http://elliottwavepredictions.com/wave-notes/

FBMKLCI-C12

This is for fun only since put and call warrant doesnt make sense!
TP is 0.25 which happen to be the upper trend channel!

How To Trade Divergences

Now it’s time to put those Jedi divergence mind tricks to work and force the markets to give you some pips!

Here we’ll show you some examples of when there was divergence between price and oscillator movements.

First up, let’s take a look at regular divergence. Below is a daily chart of USD/CHF.

We can see from the falling trend line that USD/CHF has been in a downtrend. However, there are signs that the downtrend will be coming to an end.

While price has registered lower lows, the stochastic (our indicator of choice) is showing a higher low.

Something smells fishy here. Is the reversal coming to an end? Is it time to buy this sucker?

If you had answered yes to that last question, then you would have found yourself in the middle of the Caribbean, soaking up margaritas, as you would have been knee deep in your pip winnings!

It turns out that the divergence between the stochastic and price action was a good signal to buy. Price broke through the falling trend line and formed a new uptrend. If you had bought near the bottom, you could have made more than a thousand pips, as the pair continued to shoot even higher in the following months.

Now can you see why it rocks to get in on the trend early?!

Before we move on, did you notice the tweezer bottoms that formed on the second low?

Keep an eye out for other clues that a reversal is in place. This will give you more confirmation that a trend is coming to an end, giving you even more reason to believe in the power of divergences!

Next, let’s take a look at an example of some hidden divergence. Once again, let’s hop on to the daily chart of USD/CHF.

Here we see that the pair has been in a downtrend. Notice how price has formed a lower high but the stochastic is printing higher highs.

According to our notes, this is hidden bearish divergence! Hmmm, what should we do? Time to get back in the trend?

Well, if you ain’t sure, you can sit back and watch on the sidelines first.

If you decided to sit that one out, you might be as bald as Professor Xavier because you pulled out all your hair.

Why?

Well the trend continued!

Price bounced from the trend line and eventually dropped almost 2,000 pips!

Imagine if you had spotted the divergence and seen that as a potential signal for a continuation of the trend?

Read more: http://www.babypips.com/school/high-school/trading-divergences/how-to-trade-divergences.html#ixzz3kxmoAoMP