Triple 000 and Sub-penny Chart Plays

[trader53]

Wave 2 - Interpreting Elliott Wave Basics


Rule 1: Wave 2 cannot retrace more than 100% of Wave 1.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=100835666


Wave 1 - A

The stock makes its initial move upwards.
This is usually caused
by a relatively small number of people
that all of the sudden
(for a variety of reasons, real or imagined)
feel that the price of the stock is cheap
so it’s a perfect time to buy.
This causes the price to rise.



Wave 2 - B

At this point,
enough people who were in the original wave
consider the stock overvalued and take profits.
This causes the stock to go down.
However, the stock will not make it to its previous lows
before the stock is considered a bargain again.





Elliott Wave Basics

http://stockcharts.com/school/doku.php?id=chart_school:market_analysis:elliott_wave_theory#elliott_wave_basics


These 8-wave charts show two larger degree waves (I and II)
as well as the lesser degree waves within these larger degree waves.

Waves 1-2-3-4-5 are one lesser degree than Wave I.

By extension,
Wave I is one larger degree
than Waves 1-2-3-4-5.

Waves a-b-c are one lesser degree than Wave II.