Case Studies:
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Corrective Structures.
TRIANGLE. Fake Breakdown
There are many cases when the final wave e of a triangle plays a fake breakdown extending under support established by the two preceding waves a and c. That move may come as a spiky emotional reaction to important data release only to fool traders and run stop loss orders.That fake move under a strong support quickly reverses and gives birth to a strong rally in direction of the main trend.
Corrective Structures.
TRIANGLE. Failed subwave e
There are cases when bears get so weak and frustrated and bulls are so strong that the final subwave e fails to reach the support established by the two preceding waves a and c. In this case even though wave e gets shorter than normal it still should must complete its micro a-b-c structure before a strong rally in direction of the main trend resumes
- Introduction to Section 6 “Corrective Waves”.
- Simple Zig-Zag.
- Correction shaped as a Simple Zig-Zag.
- Regular Flat.
- Bonus: Trading corrective waves shaped as a Regular Flat.
- Running Flat.
- Expanded Flat.
- Correction Shaped as a Triangle.
- Bonus: Triangle can play dirty tricky games.
- Triangle: Key Takeaways.
- Wave B is the least predictable beast.
- Bonus.Wave B explained.
- Two types of corrective structures: “through time” vs “throw price”.
- Complex Corrective Pattern: Double Three.
- Guidance on Alternation Between Corrective Waves