7/28/2015 12:55:23 AM
As of 7/27 EOD, the analysis is reading only one wave count mentioned below. It’s so clear that a 15-minute chart or any zoom is not required to decipher the count.
Daily chart:
So, per EW theory, post the ending diagonal, the price should retrace to the beginning of the pattern or perhaps beyond. I cannot be more explicit that this due to forum rules
Aside:
The ending diagonal is either wave-5 or wave-c. What will it be in this case? Well, should a trader be really bothered? Why should a trader try to analyze the chart? Why EW? What is this affair all about?
Simple answers: A trader is in the markets to make profits. He should have a method; and in this thread I am trying to analyze if EW can be a profitable method.
IMHO, any method should be able to provide TRADABLE insights. That TRADABLE is a very important element. So, after today, I think I should change the mood of the thread to identifying tradable setups rather than doing some abstract analysis. It was only Friday night when I realized that there is an ending diagonal that has developed. Today on opening, I immediately closed longs that were running for quite some time now and let the hedges run. Rather than some abstract thinking, today was a revealing day for me from an Elliott Wave perspective. MARK TRADABLE setups and pump in. Now what TRADABLE means is left to each personality (risk:reward, money management rules et al). From this light, I still think the wave principle is a valuable tool for marking so called tradable setups.
End Aside.
Thanks for reading!