I like the ema ribbon, the long term ribbon should always be trending up, with slight compression but never letting the 60ema slope downward. Technically the ultimate low doesn't need to be the start, i.e. a 5th wave truncation, but it seems to work out cleaner in this system for some reason, i.e a direct and easily identifiable pivot.
Just a thought on the 50% fib being the litmus test; Wave 2 is usually a deep correction, i.e. 61.8 or greater, but given we are looking for the 3rd of the 3rd with this system, it makes perfect sense that corrections are not as deep because we are looking for that strong momentum, being a 3rd wave. Interesting that it seems to be a flat bottom also, this usually points to a lack of conviction for the sellers, or buyers stepping in as downward momentum is faltering in the short term trend, another stong indicator that upward momentum isn't far away!
