One question that nobody ever asks is what is a daily Wave 1 doing.

I like to quantify things, so I’m a spare time quant. The lack of the ability to quantify things by the way is what deems Elliott Wave a pseudo science.

A Wave 1, as it turns out is meant to achieve a bend on the E-9 by achieving a greater than 2.8x fluctuation maximum from it (it sets an angle to work with). It is likely going to get outside the 30-sample HL2 Bollinger in the process, it is likely going to end up over or close to the other end of the E-207 band, it is likely going to accomplish this with an Echo wave and it is surely going to make an RSI2 HL2 print within the last 8%.

A 2.8x stretch is 108-pips (a fluctuation maximum is 38.4 pips for measuring purposes) measured from the edge of the E-414 30-minute band.

What was price doing before starting a Wave 1 down after calling a Wave 5 up? It was consolidating strength for the next move. In terms of structure – there wasn’t any. I know, your EW having to label up everything mind just got blown to shreds. No, no Santa either.

During the rest & re–calibration there would likely be a push somewhere that would be used as a reference to compare the Echo wave to.

A motive wave has an ABCDE labeling instead of the impulse 1-2-3-4-5. Notice how the second wave does not get anywhere near the minimum target of the red E-9.

Two more tips

#1: spotting the head divergence and the right shoulder with the help of an RSI2 on the hourly

#2: 356iL Test A Rose – the brown line with the arrows is the S-356 on the hourly

What is important? Cementing in your legacy is.