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pennies2007

02/07/10 9:33 AM

#53118 RE: gitonwithit #53107

I think you're idea on the ADX is right, git.

I use the TDI pretty heavily and it exhibits the same characteristics. It makes a sharp high to the upside during Wave 3, dips back slighly during Wave 4 and then runs up again during Wave 5 but not quite as high. What I start looking for is a big spike to the upside on the candle itself during Wave 5. After that, that last candle almost always turns into an inverted hammer of some sort. Then the downtrend begins for the correction.

On UJ, I think you're 88.50 target is dead on. Here's what I'm seeing on the daily UJ chart (below). We've got an expanding triangle to the downside. If this last shot upward is Wave 1, then the downtrend we're in now is Wave 2 and will end soon. The normal termination point is 61.8% of Wave 1 which puts it right at your target range. I see 88 as a possible low but that's about it.

After that, we start moving back up...big time.

Of course all of this is null and void if this turns out to be some type of flat or non standard correction wave. We'll have to watch closely for a reversal signal at that level.