Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : CFZ E-Wiggle Workspace -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (10550)	6/20/2009 7:44:48 PM
From: skinowski	Read Replies (1) \| Respond to of 41494

Nice chart - and the promo article that came with it is interesting. In fact, I'll paste some of it below, because they'll probably remove it. The count makes sense - SP is similar, and in fact I went short on Friday. However, even though unlikely, this pullback may still be a bullish Flat correction. Let's put it this way - if that small Roman "ii" gets taken out, I don't want to be short for awhile. ------------------------- People who build trading systems for a living will tell you that systems that work well in trending markets will break down when sideways moves occur. Likewise, non-trending systems that perform well in oscillating markets will get beat up when persistent trends set in. The fact that markets alternate between trending and non-trending periods was, of course, observed by R.N. Elliott in the first half of the last century. Elliott’s model for market movements precisely identifies which type of market is in effect -- trending or non-trending; Elliott called these impulsive and corrective waves. One strength of Elliott wave analysis is its ability to pinpoint which type of move is underway -- information that system-builders will agree is very important. My experience is that when people are first exposed to the Wave Principle, they want to know when fifth waves are about to end. But after some experience, the information that becomes most useful is "show me when a wave 2 is ending" -- because that’s the point right before strong and trending third waves start. More precisely, because wave patterns are fractal -- that is, self-repeating on all degrees of trend -- if you can find the "one-two, one-two" wave junctures, then you know that a "third of a third" wave is imminent. Those are the steepest and sharpest portions of a five-wave Elliott impulse wave, something you don't want to miss.