Sorry guys about not having stockcharts to show the wave.
I guess I could talk it.
If you go to the daily DOW chart make sure you can see it back to Dec 2012.
First thing to remember is Elliott waves move with sentiment. This means a motive or impulse wave (up phase) followed by a corrective wave (down phase).
It is here (dec 2012) that wave one of five starts. Elliott waves run in the 5-3 pattern in a bull market, and a 3-5 in a bear market. This means that for every up wave, there will be one down wave until you have 5 up waves and 3 down waves in a bull phase and vise-versa for a bear phase. We could go into the 89 to 55 ratio but I will keep it simple.
When the fifth wave is reached and three down waves have formed, you start to see the elliott wave. One thing to remember for a elliott wave to unfold, the third wave down must be greater than the first down wave unless, a triangular pattern is emerging. This chart is now showing a near precise elliott wave pattern.
Some do not like the elliott wave theory due to the Efficient Market Hypothesis. I agree with this. So you ask why then do you use the elliott wave theory? This is why; If it walks like a duck and quacks like a duck, then it must be a ????
I personally use the Elliott wave theory when the scenario is setting up as defined by the market. The SPY, The NASDAQ, and the DOW have set up in a perfect 5-3 ratio for the last six months.
The question is, is the last wave here the solid top, or is this the beginning of the second pattern? My view is a pullback to the 50Dma. If this holds, then there will be a move upward and the bull pattern repeats. If not, then we are looking at the creation of the Bear market.
Risking it all to obtain the reward, necessitates the motivation to succeed.
