Sorry for the wrong use of words, may be I should have said "the experienced traders" not "experts".
its ok ,,,,,,
just remember that Successful Trading ----- is all about Money Management
------------------------------------------------------------------- no matter what the trading style or wave count you think is occurring ,
it all comes down to your use of the money management rules that you have set for your self
------------------------------------------------------------------- ----------------------------------- -----------------------------
Last edited by marketwavez2; 05-26-2010 at 11:03 AM.
Gold chart head & shoulders chart from yesterday followed by an updated chart from today.
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Gold appears to love all this uncertainty that's
going on in Europe and the rest of the world
Thanks, marketwavez. Yeah, gold still looks good. I think stocks and many commodities are just about at the unraveling point again and that will propel gold ever higher if that unfolds like I think.
Stock market averages are breaking down...market internals (advance/decline lines), VIX is heading higher overall, etc. Dollar, yen, gold and treasuries rallying doesn't bode well for those that say that things are just fine economically right now.
Also, since the SPX has almost doubled off of its March 2009 lows, its probably well over due for a major correction and possibly a resumption of a bear market and double dip recession. We'll see.
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Please help a noob EW guy out, I'm trying to figure out what in EW indicates a reversal instead of a correction?
Thank you!
Hi Stryker,
Always remember that moves in the direction of the trend of one larger degree will unfold as five-wave moves, and that corrective moves against the trend of one larger degree will unfold as three-wave moves. It is always five waves in the direction of the trend and three waves against the trend (with the exception of diagonals).
In the diagram below you can see that both sides show an uptrend (green arrow). We know that is an uptrend because the structure shows five wave advances, and three wave declines. Five waves in the direction of the trend and three waves against the trend. At the completion of the larger five wave advance (green arrow) on both sides, you then notice that the price turns and starts heading lower. In the tile on the left, the decline (red arrow) takes the form of a five-wave decline, so this indicates that the trend has changed and is now down. In the tile on the right, however, the decline (red arrow) takes a three wave structure, which implies that the move is only corrective and the the trend is still up.
So to answer your question, you will have a trend change when you start seeing five wave moves unfold against the dominant trend. If the move against the dominant trend takes a three wave form, then it is only a correction and the dominant trend is still intact.
Jeeeez, I wish I had hung onto my short postion from 1.4825 now after seeing price action slamming downward so hard month after month... Notice on the monthly scale here, the market has clearly broken long term support and is hanging around near the lows far below fib support, indicating a low monthly close is likely in the works... In all likelyhood, it looks like any hope for the EURO is lost... I suspect we'll see a multi-month down trend ensue taking prices down to multi-year support at .8347 before we see any major relief rally... The next several months are not looking good for EUROPE at ALL! Expect some really high volatility during this move lower.. Keep using those counter trend rallies to sell... Just look at the down side momentum now, this is looking really clear for bears I will be using any rally towards 1.2500 to short this sucker in size There is great potential to make some very serious money here
Jeeeez, I wish I had hung onto my short postion from 1.4825 now after seeing price action slamming downward so hard month after month... Notice on the monthly scale here, the market has clearly broken long term support and is hanging around near the lows far below fib support, indicating a low monthly close is likely in the works... In all likelyhood, it looks like any hope for the EURO is lost... I suspect we'll see a multi-month down trend ensue taking prices down to multi-year support at .8347 before we see any major relief rally... The next several months are not looking good for EUROPE at ALL! Expect some really high volatility during this move lower.. Keep using those counter trend rallies to sell... Just look at the down side momentum now, this is looking really clear for bears I will be using any rally towards 1.2500 to short this sucker in size There is great potential to make some very serious money here
Dear Mr Brad,
May I ask you please, how do you arrive at the low circa '85 as being a "3" ?
We could all be dead long before we would know the completion of the full 8 waves on this one. The way Gbp/Usd is ranging kinda endorses that
Colly
----
There is a whole lot of down side momentum built up now, if the month closes leaving a long red bar in place, don't be surprised to see the EURO continue to vault lower over several months.. You just might live to see it, unless you're 95 years old.. lol
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Originally Posted by ahashim
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