Replies to post #137093 on Simple's Green Room

[pennies2007]

Yes, there's no hard-set rule to channel formation. That's why the top down method is absolutely necessary to make sure we get an accurate count all the way across the board.

[pennies2007]

One thing to also keep in mind Qui is how many smaller waves can occur in a typical 5 wave count.

Each single wave on a larger time frame is 5 waves on a smaller time frame. So technically, you have 5 waves on the larger time frame times 5 waves each...that gives you a total of 25 waves to count on a lower time frame of one degree. And the further down you drop, the more waves you have to count, multiplying by 5 each time.

So a daily 5 wave has 5 waves in it.

The 4 hour chart of the same pair has 25 waves.

The hourly chart has 25 x 5 = 125 waves.

The 15 minute chart has 125 x 5 = 625 waves.

So a daily 5 wave count has, at minimum, 625 smaller waves that it's made up of on a 15 minute chart.

Needless to say, that's why there are a ton of trading opportunities on any given day regardless of where we are on the larger time frames. :-)