We left off with calling an end one hump early – not that this changed much: both failed breaks fell shy of five pips extra. So the Volatility Whip correctly had the whip leg longer this time, and after a quick fake-out of Mr. Maroon this head served as the terminal for wave 2 up.
Whoop, Bam, Boogie, and #5 matched up perfectly.
The topic of this entry is to be able to spot how the thrust follows the build up in a wave structure.
This would be a good time to call in the
You already know where wave 1 down started: it came after the volatility whip. It ended in the thrust at the end of the same thirty minute candle, so in order to see the blown up structure of black candles plus the thrust wick, you would have to go down to the 5-minute timeframe, and we are not going to do that now. The previous article should had given you the feeling of how things were speeding up gradually.
Wave 2 and Wave 4 ends I marked up with the numbers.
What you need to appreciate here is that Wave 3 had two of the black candle streaks followed by a thrust each (sometimes you would see one big bodied candle if your time frame is too close to print a wick, but this is the same thing), but between the two the RSI2 did not register enough strength to call a wave. Your reference point is the read on wave 2, and if that one is barely visible because of the wave’s steepness, go to lower time frame again.
You can also see that there were 3 Full Lambdas (3 diagonal cyan lines) down during the move, since there was no shot over the bow in the middle of wave 3.