Dow Jones Elliott Wave Weekend Review (21/08/2010)

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http://traderlounge.co.uk

Charts:
(This was my preferred view)
http://api.ning.com/files/DyxQNuEK2VQeYoPw5PoEteZYs2qVAX2HpRDaDZwRuobo2aHJhF9...

(This was my alternatice count, now displayed in the video above)
http://api.ning.com/files/nJs*7nMXVCKJw-M97IB3zDqqkQYu*IK2cxOZvyD3NB8pTETsxoc...


This is my interpretation using Technical Analysis and Elliott Wave Theory to look at financial markets. Elliott wave is my preferred tool when looking at the stock market, I believe that it can work to reflect the "psychology" of the market quite accurately.


This video should NOT be taken as investment or trading advice.

Category:

Education

Tags:

• FTSE
• 100
• Dow
• Jones
• Elliott
• Wave
• Theory
• Robert
• Prechter
• Technical
• Analysis
• S&P
• 500
• Gann
• Financial
• Trading
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• Schiff
• Stock
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[cosmicguerilla1]

got me shirt and tie on , just joined de lounge , so ya better let me in for some drinks .

respect !

[Andronichuk]

@cosmicguerilla1 hahaha.

Drinks will be waiting... hopefully if we get this crash, we will all be sipping on the Champagne by the end of the week :D

[jpandyaraja]

max .....we did not get the " third wave masaccre " this week .......i think a revision

might be in order..........so far you got it quite right, but my suspicion did not seem

unfounded when the damage did not materialize....good work so far none the less....rgds j

[ElliottTrader]

@Andronichuk No worries mate. Was just trying to make the point that if EWI says that more often than not w-1 and 1-4 overlap, then the probabilities likely lean in that direction, but, as you say it's a moot point now. We did have a reasonably nice down day in the SP500, after the "c" wave up completed. So, let's celebrate that we came up with equivalent outcome counts.

[Andronichuk]

@ElliottTrader How do you mean Joe?

As I say, no where have I seen the statement that diagonals MUST have overlaping waves 1 & 4. Either way, regardless of if you agree with the diagonal or not, it is pretty meaningless to debate as even with your alternative count...

the expectation is pretty much the same.

[optionsupdate]

Where would you buy or sell and which stops would you use?

[optionsupdate]

how do u get a login for the lounge?

[ElliottTrader]

@Andronichuk Hmmm.. probabilities, probabilities Max. Sounds a bit like you are word twisting the Elliott definition of 'almost always' to 'except when I don't want them to!" Lol. I hope this is what friends are for: to be candid and forthright. Your first name-sake (Max Planck) would want always to think of the probabilities.

[Andronichuk]

@ElliottTrader Diagonals don't require an overlap, although the overlap is very common.

Even on Elliott Wave International's site when discussing leading diagonals they say "within which wave four almost always moves into the price territory of wave one". So it is rare that they do not overlap, but it can happen.

[ElliottTrader]

@Mike3gdc Agree with this comment that a leading diagonal must have an overlap in the fourth wave. My count on the most recent structure is that what is labeled as wave 2, is w, the subsequent move down is x, and the double-top is y to make a zigzag to 2. Then, what would be (iii) in this video is really (i), with an a-b-c Elliott Irregular Correction following. The implications and target box would be the same, overall.