ANSWER:
At risk of comparing market action to the "Theory of Relativity," the answer to your question is dependent on the technical expertise of the observer. There is the "visual appearance" of a market top and then the "structural, technical reality" of a market top. Visually speaking, from the lay-person's perspective, a market can "look" as if it tops slowly or quickly, that it is followed by a violent reversal right off the highs or it slowly "falls off" the highs in a bowl-shaped fashion. Technically speaking, from a NEoWave perspective, patterns don't always conclude at the high or low of a trend - they can finish "below highs" and "above lows." When a market ends a psychological Wave pattern below a high, it may slowly top and not produce a violent decline right off the highs. But, if you begin your assessment of the "new trend" from the actual conclusion of the old trend, then YES "all major tops complete with a violent reversal."
Related Posts:
Elliott Wave Principle Basics
Motive Wave:
Elliott-wave Basic Fractal Pattern
Rules:
Impulsive Waves always divide into 5 waves: Waves 1,2,3,4,& 5; followed by a corrective wave, typically A, B & C.
The waves that are numb… Read More
Fibonacci Retracement
How to Use Fibonacci Retracement to Enter a Forex Trade
The first thing you should know about the Fibonacci tool is that it works best when the forex market is trending.
The idea is to go long (or buy) on a retracement at… Read More
It was my belief that no leg of a Triangle, except for wave-e, could itself be a Triangle. Am I correct?
ANSWER:
In 1990, when I released Mastering Elliott Wave (MEW), that was also my assumption. The statements in MEW were derived from 7 years of personal experience trading, forecasting markets and teaching Wave analysis. At t… Read More
In a contracting triangle, can the e-leg be larger in price than the d-leg?
ANSWER:
The rules that make up a contracting Triangle are as follows...1. Wave-a must be the longest in price of waves-a, c & e2. Wave-e must be the shortest in price of waves-a, c & e3. Wave-d must alternate in mult… Read More
How Elliott Wave Analysis Explains Market Movement by Jody Samuels
It doesn’t really matter if it’s a 4-hour chart since the markets are fractal this could be a gold chart or
S&P or particular stock or a different time frame. Learn the patterns, internalize them and then use
them in you… Read More
0 comments:
Post a Comment