The Principles of Wave

Wave counting is as good of a pseudo science as any (Gulliver Wave)

“The Principles of Wave

Are difficult to understand

Do what you love and in the end you’ll find


I have got to give credit to my brother Elliott for counting to five and reciting the first three letters of the alphabet successfully – and I just ran out of credits.

Let’s examine the crazy volatility-event of Thursday, that was easy to misinterpret in the making I you were unprepared and were looking to closely.

This was a Wave 5 down that came out of a wave 5 of a Wave 4 and had a corrective ABC structure and was followed by an impulse wave 1 of Wave 1 up.

Right off the bat, there is a lot to digest here. How can a B end point take out the starting point of an A? It just can. (Think volatility talking into a megaphone).

Now, watch carefully, for as any good Kamikaze teacher, I’m only going to show this to you once.

It is a 15-minute chart you are looking at a Wave 3: it started when the RSI2 line kissed the 0 and set up the dive5gence on the left. Wave 1 of Wave 3 ended right before the vertical tie off of wave 2 touching 7 on the scale. Wave 3 of Wave 3 was weaker than wave 1, and it ended when the vertical drop (this time) matched the 7 read. Wave 5 of Wave 3 was a tiny flame; wave 5 had to measure in the vicinity of the RSI2 read of w3/We (“within 3”) and the current drop has to match/surpass the Wave 2 drop on the 30-minute chart. Wave 2 hit a zero. What will you get after the Wave 4 print? Wave 5 obviously (to be exact, wave 1 of Wave 5 of Wave 1 UP), that would have to make an RSI2 comparison of its own, a read of within 6 to whatever RSI2 peak was managed by Wave 3, wherever price would be at that time.

I hope you learned something new.

Strong off the bottom -> the Shape -> fully consolidated or not, it will be keep on going until it ends in parabolic tail before the correction