New TA/Charting, page-5893

With today's SP development I will freely admit what I suggested as being a bullish flag, while it looks like that for a number of days, now has turned out to be wrong! However I recently indicated that instead there was a chance of this correction being an Irregularor Expanding Flat Correction*.


(* If you think that corrections are movements against the larger trend, you are absolutely right. But if this is true, why should you expect from a correction to make a new top in an uptrend then? Because sometimes the power behind the trend is so much, that its inertia forces the retracement to a new extreme( $1.655) When that happens, the correction, which is forming, is probably an expanding flat. Elliott called this type of flat “irregular”, but in fact it is very common. The Expanding flat consists of three waves labeled A-B-C, structured 3-3-5. Three waves for A to $1.415, three waves for B to $1.655 and five waves for C to 1.33. Because of its shape, each wave in the expanding flat is longer than the previous one in terms of price – B is longer than A, C is longer than B.)

Here the LTR 2 hour chart to illustrate the above ...

Please also note how well the wave count coincides with the Wyckoffian interpretation. Some would suggest that is irrelevant, however I like to differ on that point!