Thread: Elliott Wave Trading Discussion

Originally Posted by mrbandwidth

Your wave IV in C overlaps wave I... Isn't supposed that the count is invalidated then?

Regards,
Mr B

Hey Mr B,
Wave C looks to be shaping up to be an ending diagonal. Its actually one of the only patterns where wave IV typically overlaps wave I within the diagonal. Its what helps make the lines converge thereby giving it the wedge like shape known as the diagonal. It only happens as wave 5 and wave C hence the name "Ending Diagonal"

"Ending Diagonal

n ending diagonal is a special type of wave that occurs primarily in the fifth wave position at times when the preceding move has gone "too far too fast," as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes (see next section), they appear only as the final "C" wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.

Ending diagonals take a wedge shape within two converging lines, with each subwave, including waves 1, 3 and 5, subdividing into a "three," which is otherwise a corrective wave phenomenon. The ending diagonal is illustrated in Figures 8 and 9 and shown in its typical position in larger impulse waves"

Alternate chart count shows wave-E of possible triangle not finished(complex correction instead of triangle is still being consider for additional downside potential). Sidelined for now for better setup and R/R.

A-Yo Out[/QUOTE]

Well the complex correction has succeeded and the triangle has failed. Good lesson, almost great lesson. Matter of fact great lesson learned. Money management sounds like a better lesson to learn. Matter of fact, two lessons learned. Did some reading and both counts are wrong. Triangles are not suppose to have impulsive waves(53535) instead are suppose to be corrective only(33333) so scratch those counts. After all, i'm the only newbie making a fool of himself for the sake of learning(I wish I could laugh). Triangles only happens in certain circumstances. Just read the above post by Italm, wishing I read it two days ago. Any case I did some reading before Italm post but after I posted the charts. Sorry for misleading anyone. New charts coming soon.

AyoBro

Nevermind, wrong chart posted. I guess I need some sleep.

Originally Posted by italm31

Hey Mr B,
Wave C looks to be shaping up to be an ending diagonal. Its actually one of the only patterns where wave IV typically overlaps wave I within the diagonal. Its what helps make the lines converge thereby giving it the wedge like shape known as the diagonal. It only happens as wave 5 and wave C hence the name "Ending Diagonal"

"Ending Diagonal

n ending diagonal is a special type of wave that occurs primarily in the fifth wave position at times when the preceding move has gone "too far too fast," as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes (see next section), they appear only as the final "C" wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.

Ending diagonals take a wedge shape within two converging lines, with each subwave, including waves 1, 3 and 5, subdividing into a "three," which is otherwise a corrective wave phenomenon. The ending diagonal is illustrated in Figures 8 and 9 and shown in its typical position in larger impulse waves"

Hi Italm,

Can 5th wave in an Ending Diagonal be truncated? do you see an Ending Diagnoal pattern unfolding here in Oil too?

Cheers

Mike

Originally Posted by mike3gdc

Hi Italm,

Can 5th wave in an Ending Diagonal be truncated? do you see an Ending Diagnoal pattern unfolding here in Oil too?

Cheers

Mike

Yes Mike - if it is a contracting ED fifth may be truncated

Patryk

Originally Posted by mike3gdc

Hi Italm,

Can 5th wave in an Ending Diagonal be truncated? do you see an Ending Diagnoal pattern unfolding here in Oil too?

Cheers

Mike

Hi Mike,
I do not see an ending diagonal unfolding in oil. The important aspect in looking at ending Ds is that every wave, including waves 1,3,5 unfold in a corrective manner...that is that they unfold in 3wave sequences. Also, I dont think Ive ever seen a truncated 5th in an ending Diagonal but I guess anything is possible. I dont think it will be the case here though.

Originally Posted by italm31

Hi Mike,
I do not see an ending diagonal unfolding in oil. The important aspect in looking at ending Ds is that every wave, including waves 1,3,5 unfold in a corrective manner...that is that they unfold in 3wave sequences. Also, I dont think Ive ever seen a truncated 5th in an ending Diagonal but I guess anything is possible. I dont think it will be the case here though.

Fazi said there's one but it occurs in Contracting Ending Triangles...
I looked at the EWP page 36:

"on rare occasions,a diagonal triangle may ends in a truncation,althougth in our exprience such truncations occur only by the slimmest of margins"

I read the section but couldnt get it.what is difference between DT and Ending D??

he talks about 2 types of Ending Diagonal : Expanding wedge and contracting wedge but does not explain the difference between Diagonal Triangles and Ending diagonals?

Could you please elaborate abit?

Cheers

AM E-MINI update. WOW! Lower yesterday and overnight. Huge move up on the NFP numbers. Hit the prior highs but so far no breakout. Sold off to 1000 and that's holding so far.

Well, I would say the bulls have been getting all the good news they could have hoped for this week. So far it hasn't translated into the expected breakout. Let's see what happens today. Breakout - we go higher - if the market can't it may be the start of a sell-off of larger proportions. The close should be interesting.

Dollar STRONG. Oil and gold weak. There is a bit of a separation of the prior correlation between the dollar and equities. Previously, it was strong dollar weak equities. Today it's both strong. Will one give today or do we have a new correlation? Hmmm.

E-MINI. More detailed look on the 2 day 15 minute chart of support and resistance. Double bottom at 990 and double top at 1007. Take your pick? Higher or lower?

Since wave A's usually end between the 38.2% - 50% fib levels, could we be close to the turning point soon?

Originally Posted by diver

AM E-MINI update. WOW! Lower yesterday and overnight. Huge move up on the NFP numbers. Hit the prior highs but so far no breakout. Sold off to 1000 and that's holding so far.

Well, I would say the bulls have been getting all the good news they could have hoped for this week. So far it hasn't translated into the expected breakout. Let's see what happens today. Breakout - we go higher - if the market can't it may be the start of a sell-off of larger proportions. The close should be interesting.

Dollar STRONG. Oil and gold weak. There is a bit of a separation of the prior correlation between the dollar and equities. Previously, it was strong dollar weak equities. Today it's both strong. Will one give today or do we have a new correlation? Hmmm.

Hey Diver,

Monday,the correlction will be resumed,i assume! but oil says something else.ofcourse in MHO!

[QUOTE=diver;320619]E-MINI. More detailed look on the 2 day 15 minute chart of support and resistance. Double bottom at 990 and double top at 1007. Take your pick? Higher or lower?



Today,cant think of anything but Ending Diagonal!! I see it in trees,people,buildings!
I think,there's a semilair ED unfolding in the Dow and S&P too!

I am HIGHER! But alittle bit like another 3-4 days!


edit: it looks like EURO is selling off sharply! Elliott wave page 36 "An important change of direction follow Ending Diagonals" ...!!

Originally Posted by marketwavez2

Gbp/Usd

Here's Today's Chart Update ----------

==============================

Marketwaves,thank you for showing me how to make my charts black&white.it is much better now.enjoing it!

5 waves down on the 5 minute euro chart.

[QUOTE=mike3gdc;320645]

Originally Posted by diver

E-MINI. More detailed look on the 2 day 15 minute chart of support and resistance. Double bottom at 990 and double top at 1007. Take your pick? Higher or lower?



Today,cant think of anything but Ending Diagonal!! I see it in trees,people,buildings!
I think,there's a semilair ED unfolding in the Dow and S&P too!

I am HIGHER! But alittle bit like another 3-4 days!


edit: it looks like EURO is selling off sharply! Elliott wave page 36 "An important change of direction follow Ending Diagonals" ...!!

Mike;

I agree on the count. But, should that be a leading diagonal?

Good Luck.

[QUOTE=aerocom;320661]

Originally Posted by mike3gdc

Mike;

I agree on the count. But, should that be a leading diagonal?

Good Luck.

Ditto. Count looks good to me.