Saturday, December 11, 2010

2 Counts 1 Direction

While the idea remains the same from the previous post, there are some small adjustments needed. The problem is that from the latest high, there are only 3 waves down. So there is no wave C to finish the bigger corrective wave B. These 3 waves down from the latest high are probably part of a complex correction, so instead of a (ABC)X(ABC), we now get a (ABC)X(WXY). Another possibility is that all these 3 waves form a triangle wave B. So sunday at the opening i see price going a bit higher as the latest rally seems incomplete, but after that, price should decline.



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