The market detective is a Chartered Market Technician (CMT). He uses technical analysis to identify market turning points and opportunities. He is primarily an Elliottician, he uses the Elliott wave principle and Fibonacci ratio analysis to uncover clues about the direction of the market. He uses other forms of technical analysis to corroborate his findings in such a way as to assign a probability factor to them.
1. 10/21/2008 8:09 PM pacific
A 120 minute line chart paints a very clear picture, 5 waves down with no rules broken
on a closing bar. You might wonder why I don’t use the line charts more often. The main
reason is that if I measure on a candle or bar chart, then the measured ratios provide an
accurate picture of the price highs and lows. As a trader, this matters a lot because the
price swings can be huge. A line chart measures the closing price of each bar, and
amazingly projects the closing ratios, which can be vastly different.
However, with regained confidence that we have started the 3rd wave down, there is not a
lot of difference. We could be done with wave ii or we could see a small retrace and
extend a bit higher. I show the latter on the chart.
Note that the label is 1 of (3). Do you want to see where wave 3 projects?
2. 10/21/2008 8:09 PM pacific
I hope I am wrong. But I said the same thing when I wrote this: Riding The Elliott Wave.
TMD/DW
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