Replies to post #27311 on The TradingEdge

[jxyzobrien]

Simple EW rules
1-- Market either does 5 waves or abc (3 waves)

2 -- 2 waves will be similar in size
so if 2 waves small 1 wave is large or
if 2 waves large 1 will be small.

3 -- In 5 waves wave 3 is usually the longest and is 1.6 to 2.0
the size of wave 1.
IF wave 1 is large then wave 3 will .666 of wave 1 this is called
a hard wave 1. IF wave 2 retraces most of wave 1 wave 3 will be
large and normal 1.6 to 2.0 size this is a hard wave 2.

4 -- after an abc the market usually does 5 waves to keep the current
trend intact. It can do 5 waves also. Assume the longer term
trend will stay intact.

5 -- abc rules - the A wave will normally be fast large and violent to catch traders by surprise. The B sucker wave will usually be .50 to .66 of A. The c wave will be similar to a in size and be choppy and time consuming.
Sometimes a=b=c equal in size.

6 -measure previous moves to determine size of next move