This idea implies that price will revisit the July 2008 top maybe shaping
a large Flat.
If Price is unfolding a Double Zig Zag then on May 2011 price established
the wave (W).
Now we need a wave (X), which has to be the result of a corrective EWP.
Since last month price did not breach the October 2011 low at 74.95, the internal
structure of the pullback off the May 2011 peak is establishing lower highs
/ higher lows, which could mean that price may be unfolding a Triangle.
If price is now involved in unfolding the wave (D) of the Triangle project
then price should reach at least the range of the 20 w MA = 96.90 / 0.618 retracement
= 97.89
If price does not reach the 20 w MA and instead it stalls and reverse in the
area of the 0.5 retracement then maybe we could have an Ending Diagonal wave
(C) in progress, in which case the wave (X) will be established once the ED
is completed.
Contact: If you would like to contact the author, you can e-mail him
at thewavetrading@gmail.com
The main objective of this project is to share my views on several markets
and asset classes.
In the initial stage TWT website will be a free service.
My main focus will be the equity market with SPX being the leader but I will
also follow US equity sectors, major European indices, fixed income, currencies
and commodities markets.
My analysis is based upon traditional Technical Analysis, Elliot Wave guidelines
and investor sentiment.
My goal is to establish the most likely path that the price of a particular
asset will undertake and profit through ETF instruments both on the long and
short side and mainly with leveraged ones (2 x & 3 x).
The advantage of ETF investments is that it allows getting involved in equity
indices & sectors, currencies, fixed income, commodities etc.
Therefore the main purpose of TWT will be to establish investment strategies
regardless if the market is in an up trend or in a down trend, leveraging
the chosen scenario while managing the risk by establishing protective stop
losses.
Hence I will always define the risk, I will try to let winners run the wave
and I will cut the losses if my strategy is wrong.
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