CLX studies have gone to "Green MOJO", after 13 days of red followed by 6 days of green followed by 19 days of red, which in the world of Elliott Wave is an ABC corrective wave. I love it! Some 20-25 years ago, when I was younger and probably smarter - and definitely more energetic - I used to get obsessed with translating classic TA patterns into EW.
Like, for example, take H&S. Often, the price will cross the neckline - and continue in the same direction - which means that it “worked out”. Other times, it will bounce off the neckline (sometimes, after penetrating it for a bit) - AND resume the previous trend. This means the H&S “failed”.
In the 2nd, “failing” case, we have an ABC pullback. Price will decline down the Head, up the Right Shoulder - and then, down towards the neckline, before reversing. In fact, it’s been noticed that a “Failed” H&S is an excellent trend continuation pattern. It’s clear why - it’s an ABC.
When H&S works out, that’s interesting too — it’s a trend change.
I think the fact that you’re translating CLX studies into EW patterns means that you’re a born Elliottician!
Welcome to the club, sir! :) |
