Short Term Trading Member Forum

[techcharter]

Willie - Wave Count Rule

Wave 3 is never the shortest wave in the direction of larger trend.

On your weekly chart, BLue Wave 3 from July '06 to Oct '07 has smaller degree wave 3 as the smallest of the motive waves. This is a violation of e-wave rules.

Try a new wave count. The rally off the dotcom bottom has to be corrective since the WAVE A, 2000 high to 2003 lows, was motive, not a single or double zigzag. Corrective waves are very tough to count. I used the German DAX as a proxiy for the longer term wave since the ending diagonal in the last part of 2007 had the highest probability. Since the western markets are highly synchronized, the US markets couldn't be too far ahead or behind.