friday trading, page-248

You need to keep in mind that I draw up various different scenarios on how a market will play out then arrange them with "Good, Better, Best". The EW construction of the XJO chart was probably best fit as I viewed it at the time.

"For range calculations do you use the High and the low values or only close values ?" I use High & Low

"Can you also predict or forecast the time ?" I implement other methodology to predict time primarily Natural Squares; I have posted examples in the Forex forum. It is too involved to explain.

"Wave 4 up value - do we have to really wait for the market to confirm or assume a vlaue based on 50 % or 61.8 retracement and also based on market conditions and news - both economic and speculation?" The highs of wave four is pretty much set in concrete now from where I sit - obviously wave three may only last 5-10% then resume the down trend. If so, the current EW construct is a failure and will be scrapped. No point clinging onto hopo, I'll give the pattern every chance to perform. As far as I am aware EW does forward predict market behaviour, it was amazing the market reacted positively to Tim Geithner's appointment, so much positiveity around, could it be the catalyst? Not sure, but could be..pretty amazing the count forward predicted a major market event without knowing what it would be 6 weeks ago.

Once wave 4 up is completed, then calculation of wave 5 down target could be estimated like wave 3 down target - is that right ? From where I sit, first we need to ensure that wave four is going to perform and from early indications it is a rough maybe to maybe. If it does perform then we take the length of wave 2 and add it to the length of wave four and we have wave 5.


Hope this helps.