Wave ii as Expanded Flat
One Tricky Extra Higher High
"One extra high that change it all" or "When a pretty simple scenario gets really complicated".
Below you can see a chart I posted pre-market on Wednesday 10-31-2019. That was FOMC day when FED was supposed to announce another rate cut. That count expected one more push higher to 3,050 to complete subwave -c- of wave -ii up. After completion of that wave -i-up I expected a corrective -a-b-c- down structure in wave -ii- down.
ES-mini - 15 min chart updated at 8-56 AM on 10-30-2019
Below you can see that ES refused to follow my expected path. On the chart above you can see that completion of the subwave -c of wave -i- up required one more push higher. Instead of one more push higher it has made a corrective a-b-c move down. I was too quick to count that a-b-c down structure as the whole corrective wave -ii- down.
ES-mini - 15 min chart updated at 10-38 AM on 10-30-2019
Section 3. Video 2.
Rule 1 of the Fractal
FIVE WAVES UP
Wave 2 of the Five Wave Up fractal shall never violate the starting point of the Five Wave Up fractal, its lowest from which wave A of 1 started.
MAIN FEATURES
- The first move in the Five Wave Up fractal is wave 1 up structured as A-B-C up fractal
- The following wave 2 is a bearish reaction to the wave 1 up.
- Wave 2 down is also structured as A-B-C fractal
- Wave 2 is not allowed to breach a starting point of wave 1 up, its lowest point
- Wave 2 down makes a higher low in comparison to the lowest point of the whole Five wave Up fractal at the starting point of wave 1 up
In the video I explain all you the nitty-gritty details about this pattern
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