The higher timeframe has 3 valid possibilities as shown in the last post, so now i'm focusing on the smaller timeframe. From the bottom we can see 7 legs. For now this is corrective unless there's another leg higher. The first part of the rally seems corrective to me. Some people may count this entire rally as an impulsive wave, but that requires a wave 2 as an expanded flat, which is rare. I prefer to count the first part as a corrective complex double three also known as a WXY corrective wave. The 2nd part fits better as a zigzag, the correct labeling for a zigzag is ABC. It is possible that this zigzag isn't done yet since wave C is still smaller than wave A, usually in zigzags A and C are equal in size. The question is now where this fits into the bigger timeframe count. For this we can only wait for more price action.
Wednesday, October 12, 2011
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