Tuesday, October 2, 2012

DEBUNKING A Difficult Pattern : $ES_F



I have hesitated showing this wave count because the pattern was very unclear. Let's go over how and what I'm thinking.

1. The decline from 1468 is only in three waves as noted with the blue lines. That's corrective.
2. The subsequent move up overlaps the initial decline at 1443.5 thereby negating any possibility of an impulsive count.
3. The market has chopped around taking no prisoners over the last two trading sessions making little to no technical progress.


Under these assumptions, a triangle, w.b circle is forming that would continue to whipsaw traders. This is my trade plan.

In letting the market prove itself to  me, I personally would be willing to trade the market if price traces out the remaining annotations {w.(d) and w.(e)} in a three wave fashion. This is my personal trade plan.

As part of my ongoing training efforts, I will lay out a hypothetical trade so that readers can see how I apply the wave principle in my trading.

Best of Trading


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