Short Term Trading Member Forum

[techcharter]

Would the real Ending Diagonal Please Stand Up

There are several ending diagonal counts various members are considering.

One count also has the ending diagonal starting at the March 2011 lows. wave 4 has just completed. The trendlines are diverging as broadening top; however, wave 3 is smaller than wave 1, so wave 5 must be smaller than wave 3. This projects a top next week.

Another count is the ending diagonal started at the March 2011 lows. wave 1 ended at the early May 2011 highs. The rest of May has been corrective wave 2. The ending diagonal has the potential to develop in converging trendlines. This projects a top in late summer.

Both are equally valid counts, and no sinlge argument is more valid than the other. The cautious thing to do is play the first count. If a pullback from next week's top doesn't drop sharply, then the second count becomes the primary count.