I wanted to offer my interpretation of the Elliott Wave Count structure on the NASDAQ chart, which is very similar to that of the S&P 500 and Dow Jones. For “Basic Elliott Rules,” see my prior post. Let’s get started with the current possible (preferred) Elliott Count on the NASDAQ: Elliotticians know that – if…
I thought it might be helpful to look back since 2000 to show the two previous times the Dow Jones Index was down seven consecutive days in a row. The next two charts show the before, during, and aftermath of these instances for you to see for yourself. The first time it happened since 2000…
Just when you thought the trading day couldn’t get any weirder… price gaps down strongly (and likely unexpectedly) in the morning, forms a trend day virtually all trading day long, and then destroys the trend-day down structure into the close. Let’s look at the intraday 5-minute structure and the sneaky Elliott Wave pattern that formed…
I know – probably the last thing you want to read on a day when the US Equity Indexes are down over 5% is an example of the Elliott Wave Theory applied to a one-minute chart of the DIA, but sometimes it helps to envision structure in an environment of perceived chaos and randomness. If…
I previously posted the “Three Hard and Fast Rules of Elliott Wave Theory” and now it’s time to see these simple rules in action on two stocks on different time frames. First, let’s review those rules: 1. Wave #2 Cannot Retrace 100% of Wave #1 2. Wave #3 Cannot be the Shortest Wave (but does…
Despite how difficult Elliott Wave Theory seems – and it’s certainly not easy to interpret possible wave counts – there are really only three solid, objective rules that your wave count must follow – the rest is mere guidelines. What are these three main rules you ask? Let me preface by saying that Elliott proclaimed…
On Wednesday, the Dow Jones ETF – the DIA – gave us a good example of an ascending triangle… that brokeout in the opposite direction as expected. Let’s examine it and learn from its development. 5-Minute Chart DIA: Generally, an Ascending Triangle is a continuation pattern and has an upwards break-out bias, as strength is…
What a month September was for the Market. It lived up to its reputation as a weak month historically. So, how did the gap-fade tactic work in the Month of September? How many overnight gaps occurred in the Dow (DIA) and how many of those filled? It’s time to take a look as a new…
First, we never know when a company will declare bankruptcy or cease trading – charts can’t tell us that. What they can do is warn us to a deteriorating situation and allow risk-management procedures to take place, as well as warning us that we should probably avoid or reduce exposure to a given stock. Let’s…
A number of readers have asked me to define what chart settings and indicators I use and I thought I should post regarding this information. I trade with TradeStation and do all trading through them, but for the blog, I enjoy posting charts from StockCharts.com because of the professional look and feel of their charts,…