Elliot Wave has 5 typical waves in the major trend (Wave 1, 2, 3, 4 and 5) followed by 3 waves (Waves A, B and C) in the countertrend.
In the bigger picture, the Wave 1 started in the 1970's and ended in 1987. Wave 3 started in 1987 and ended in 2000. Wave 5 started in 2002 and ended in 2007. Wave started in 2007 and ended in Mar 2009. Wave B is being formed and may be in the final stages. If Wave C is formed, it may break below Mar 2009 Low.
Cheers !
PersianCat (Millionaire-in progress)
2 comments:
Elliot Wave will most likely to fail under such scenario. If S&P were to break below 800, considering that it is a double top, this would mean a measured move bringing the final target to 100. Is that likely? I doubt so. If that were to happen, we can all forget about seeing daylight again. I think Elliot Wave theory is the biggest paradox in the history of trading. When you get it wrong, they said that maybe the first two wave counts have been miscounted or some other excuses. The beauty of Elliot Wave theory is you can never be wrong--If you are ever wrong, all you need to do is to reinterpret your wave count again. This to me is the greatest joke in trading.
No professional trader should use Elliot wave analysis. It is not scientific at all. If you are predictions are correct(S&P below 800) then the world will end in 2012. If we can believe Elliot wave, then we can believe in 2012 also.
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