Typically, the 1.618 projection for wave 3 means it is 1.618 x wave 1, that starts from the bottom / end of wave 2.
For me it all depends on if that "most recent high" can technically be wave 1, if it is then we can't have the lowest low going beneath it. So this is where the double bottoms come in.
PLS and RDN and ESR above are all examples of not having the grid set over the first wave. Brings me back to the point of, are the waves even relevant for this system, or put another way, why should we muddy the waters trying to fit them in.
If this works then we need another way to set that price target. Possibly 1.618*most recent high minus the low, measured from the fib retrace level low (See chart below). We are looking for that high momentum trade similar to a 3rd wave, so why shouldn't that be based off the most recent high and low.
The only question this raises for me, do you remember the symetrical moves @W3hunter, where you had A to B = A to C, in the chart below it is A to B = A to price target. This is only a 1:1 move measured from A, rather than the 1:1.618 measured from the low at C. Just can't remember what structure you applied that to. Also, is this the PT on RSH that you have, i.e. PT = (A-B)*1.618+A, where you project from the High at A, rather than the new low at C?
