"Ralph's Dream"
Often, when we dream, for some time our dream can be clear, vivid, contain a story, and maybe even seem to carry a message… Then, gradually – often – it will drift off into some ‘side story’, it will become rambling and sort of confused, and carry on without rhyme or reason, maybe until the next ‘story’ will sometimes begin to take shape.
If this is how human unconscious tends to function, and if markets (at least to some extent) are indeed controlled by the ebbs and tides of our collective unconscious, then Elliott waves (reflecting those ebbs and tides) once in a while MUST stop making any sense, and must stop being useful.
Often Wave analysts painfully struggle with ‘corrections’, insisting, that every little bit of market action should fit neatly into their scheme of things, a.k.a., ‘the count’. However, if they are right about the unconscious, ‘dreamy’ nature of the waves, such demand for an ever-present tight internal logic may well make little sense. During complicated corrections, one should disregard the Waves for a while, switch to classical TA, draw some channels and trendlines, and then later, after a breakout, go back and ‘recount’ your waves, if you feel compelled to do so.
Many embarrassing and expensive mistakes can be avoided this way. The difficulty is simply in being able to recognize the limitations of the method, and having the discipline to put it aside for a while now and then.
“Life is but a dream…”
AK |
