It’s a plausible scenario, since we have not had downside capitulation yet.
I sense one should perhaps not jump in short just yet, Tuesdays volume suggests there might be some more upside to come after some consolidation, the bulls have woken up and their hopes may not ebb away so soon.

Thanks. I’m not familiar with that strategy. It’d be easy to test out for edge. I’ll have to do more work with that one.

I’m along with your line of thinking – fractal 4 up then into resistance (possible Fibonacci or moving averages) which gives us the final “really scary” Wave 5 down – capitulation forms, a (short-term?) bottom is formed and we do a big move up after that.

As we speak, it seems we have had a Fractual wave 4 confirmation, it could well go higher but would expect poor economic and fundamentals to lead us down and confirm capitulation Fractual 5th at some point-unless i am wrong, which is more than possible.

Besides, I don’t want to give away all of my secrets!

More people understand and relate to StockCharts charts than TradeStation, and SC just has a cleaner feel.

Good points. I look at the Dow (specifically DIA because you can trade it) as a proxy for the market in terms of structure and opportunity. I leave it up to you to translate opportunity into your chosen vehicle, be it DIA, SPY, @YM, @ES, or even a double leveraged (or inverse) ETF. There’s simply too much to discuss.

I’m trying to show trading ideas or concepts – or low-risk opportunities – and then leaving it up for the reader to apply into a methodology or actual practice.

My thought process is that the S&P 500 would be a better vehicle to show analysis than the Dow going forward.