The chart..that mo divergence from Mar 1-9 looks rather steep. So I’m wondering, do you think the steepness of a divergence is any clue as to its validity(like the steeper it is the more likely it is to be a signal for a price reversal)?

Also, you ever use stochastics? Maybe you could do a future post on that indicator..I would be interested to see your use/opinion of it.

thanks!
charleS

I see your point – I think what I was trying to do was show a 5-wave structure for fractal wave 1 up. Wave 3 does have a 3-wave structure but iii is the shortest (which is why I chose not to fractalize it). It might be a better strategy to have 1 and 2 be that little blip, but my logic was to have 1 stand-alone.

Notice I was sneaky – I’m letting the reader add his/her own interpretation. I just showed the fractal wave components of the structure without labeling the larger waves. Some think we’re still in a 4; some think the 5 has already completed. The fact that we broke 805 threw me off so I had to go back to the basic fractal wave structure and build from there.

I find it hard to believe we’re about to, or are already in an up-impulse (meaning the primary 5 waves have officially completed).

I don’t exactly have the words or Wave count for it (other than we just finished primary 3), but I believe we’re going into some sort of upward correction phase. The labels will fall into place later but we’ll all have to watch it very carefully as it develops.

I’m having a lot of trouble labeling this impulse up since Mar 9. I ended up with a different labeling than you — doesn’t your labeling have iii of 3 up as the shortest wave, a rule violation?

Anyway, I have a tiny 1 and 2 at the beginning, then a third wave extension, then my 3 and 4 match yours. But my channel has wave 5 finishing on Mar 23 or so, and what comes since is labeled as an A-B irregular flat. In that case we’re just starting an impulse wave C down. Well, I guess it’s not that different, because the one count calls for an A down and the other a C down.

The next question is whether we’re entering 2 of (1), or B of (4), which I guess you covered in the last post.

Kevin

I love it!

I used to have a study in TradeStation called the MA Ribbon, that had probably 20 or 30 moving averages of different colors. Was beautiful like that.

Excellent question.

There’s a hierarchy of timeframes, in that higher timeframe signals/structure hold more weight than lower.

But each timeframe offers its own nuances and opportunities.

It really depends on the trader and what’s appropriate. A person with a full time job probably can not trade looking at low timeframe charts – he/she will have to stick to daily and weekly.

However an intraday, 1-min or 5-min chart trader probably won’t get much relavence from a weekly or monthly chart.

All concepts in technical analysis are fractal.