Corrective waves can show up better in the oscillator than in the
chart. Point 3 is a cycle low. The oscillator has corrected back down in a
price pulse form, and the slow pink line has pulled back low. In techncial
analysis, "right translation" is word in cycle terminology used to indicate
that the high of the cycle occurs late in the cycle, which is what happens in
uptrending market. Thus, the cycle low can fall shortly after
the high has been made. When marking off cycles, most technicians measure
cycles from low to low, as opposed to from high to high.
Oct 15 2003
12:25PM
Another example of Corrective _A-B-C
Oct 15 2003
12:24PM
Corrective _A-B-C
Here is corrective wave pattern that shows up better in the oscillator than
it will in the charts.
Oct 15 2003
12:19PM
More on divergences
Don't look for divergences where impulse is still to downside, as in first
example on the left. You see the second leg down on retest on
example on left, still has strong downside impulse. THe second example,
could almost drawwwww trendlines around descending wedge, which showed LOSS of
momentum or downside impulse.
Oct 15 2003
12:10PM
GM - back to hourly EMA
Oct 15 2003
12:07PM
BK - hourly grail buys underneath.
Oct 15 2003
10:50AM
HDI - 120 Sell Divergence
Can see how price made new highs but 3/10 went
lower. Notice slow line is near its highs along with entire pattern above
the zero line. Also market is trading along upper Keltner channels.
These are the criteria Linda talked about in class yesterday. Play is to
120 EMA which this obviously achieved (i.e., would cover on the gap
down).
