Mini DOW

For those who are interested in learning how the wave principle can be used to project movement in the markets, here is a quick training exercise and what I was looking at over the last few days.

First and foremost, I like to set up my Fibonacci grid as shown above before I apply any wave labeling. The minor support zones have been removed from the chart but feel free to use your own software to see where other ares of support were present and how the market reacted off those levels.

Most readers know that I have been looking for a minimal decline to 13006. As of the time of this post, the market fell to 13011. With a typical 3 point front-run and 13014 minor support just above my key level, support may be holding.

At the 60-min chart level, my preferred count shows why I was looking at 13006 as well as the possibility that the alternate count could be applicable if the market rotates strongly from 13006. As always, applying wave counts to extending waves in real-time can be somewhat difficult and often leads to revisions in the subdivisions of waves. As labeled w.i = w.iii at 13006. 

I'll be watching the reaction off 13011 or 13006. Under my preferred count, if 13006 is achieve, I'm looking for price to rotate 13055-86 before another round of selling. As you know, 4th waves can not enter into the territory of wave 1, therefore, a print above 13099 invalidates the preferred count. 

I hope you found this real time training exercise helpful. 

Best of Trading

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