To the interested parties:
Wave nomenclature.
1) Impulse wave - in direction of market - breaks down into five secondary waves: 1,3,5 are secondary impulse waves, 2 and 4 are corrective waves.
2) Corrective waves - move opposite direction of market - usually breaks down into 3 waves: A,B,C.
From the recent high Dave interprets the main market direction as up, therefore the present count assumes that we are in a corrective wave down, which would mean and A,B,C action. His interpretation is we are in wave C down. Wave C breaks down into 5 subwaves: 1,3,and 5 are down, in sync with overall direction of C and 2 and 4 are up, corrective to main direction of C. If he's right, we finished the corrective wave 2 of C Thursday (which because it was corrective had in internal A,B,C form. Now we are in wave 3 down in sync with main direction of big wave C from several days ago. Wave 3, as in impulse wave in the context of C down, should break down into 5 subwaves: 1,3,5 down and 2,4 corrective up. The subwaves can subdivide also and that is what he was counting in his last post.
I hope this helps some, but there is simple literature available that has diagrams, etc.
FWIW
RWS |
