Wrong 1: Not everything is part of a wave structure. The episodes of Extra High energy reverses (XX) and compressed volatility at some point may trigger a whipping “revenge”. This move may end with a higher high / lower low beyond the established wave structure at times.

Wrong 2: Wave 3 may actually be a lot weaker than a Wave 1, since the M, Measuring leg only starts drawing after a breach of the 2SD 30 sample BB. I know, E.W. says Wave 3 cannot be the weakest of the 3 impulses, it is the impression that plants in people’s heads that is the problem here.

Wrong 3: Wave 1 and Wave 4 cannot overlap. You can see 2 overlaps out of the last 3 wave structures above.

The biggest problem with their system is the lack of quantifying anything. There is no measuring stick, only looks and likes. I believe using the Choppiness is a way of overcoming a lot of the problems.

This idea of the “Wave 3” up on the Euro, that Pippoletto and others are beating away at…

…does not represent the expectations of the futures markets. The further out we go in time, the more dollar strength seems to be the theme.

Remember, it is a relative game. The Dollar is losing its value, but this does not mean that this would be the overall case against the Euro.

The Push of this run up was made, a “Wave 4” is now a whisper away from the “Wave 1”. A continuation divergence is about to print on the Daily chart.

The Echo (quasi Wave 5) may or may not make a higher high. Typically there would be a beat anywhere from 1 to 64 pips, and do not forget, that the “Volatility Whip” when the Volatility bursts out of the compression can do the same thing as an Echo could, which is anywhere from falling short to making a 110-pip beat (at the end of a more complex / triple wave structure separated by continuation divergences “C” – see below).