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Blogs > GoldmanHuangShan > Bohemian Tiger


GoldmanHuangShan 68M
2531 posts
11/28/2007 10:43 am

Last Read:
11/28/2007 7:32 pm
Fibonacci of SSE

Wave 1 is difficult to identify since it appears to be more of a correction. It may be dynamic, as when the price breaks out of a consolidation, and then again it may not. It is often the shortest of the impulse waves.

Wave 2 should be easier to identify due to its three-subwave structure. It tends to retrace by about .618% (a Fibonacci percentage retracement) of the first wave. Of course, if it retraces more than 100%,then the reading is off. This wave tends to generate a major reversal formation.

Wave 3 tends to be the longest and, is never the shortest. It has a dynamic move i.e. burst , and the penetration of the high of wave 1 attracts more buyers in a bull market or more sellers in a bear market. Naturally, this makes for a good volume. Fundamentals tend to support the move and the psychology of the market exudes optimism.

Wave 4. According to the rule of alternation, if wave 2 is complex, then wave 4 tends to have a less complex pattern, and vice versa. This wave is prone to developing a triangular formation. wave 4 cannot overlap wave 1.

Wave 5 can be dynamic and extended in foreign exchange. By now everyone has figured out the long-term trend, the fundamentals are packaged in a rosy wrap and a good time is being had by all. These over-all conditions can create a good overshooting scenario. Oscillators should help.

Wave A is difficult to catch through all the euphoria. A good hint comes from the break into five subwaves.

Wave B may be of different complexities and lengths, since the last bulls are making their final mark in a previously rising market and the bears are testing the waters and starting to get short currency Wave C.

Wave C puts the stamp on the end of the trend. Following a bull market, wave C should fall below the bottom of wave A.

touch213 69M

11/28/2007 3:52 pm

 I like this post but must read it when I have time to digest and reflect.


Ariande 57M
165 posts
11/28/2007 3:09 pm

 the seventh wave is the last in the set
and usually the most perfectly formed,
it also tends to break more 'true' than its predecessors!