In the Dow (YM) futures, we have been counting the expanding diagonal pattern upward. In this count, the internal waves would be 3-3-3-3-3 which are all zigzags. With 126 candles on the daily chart, the EWO has the perfect signature for the expanding pattern with wave (iv) deeper than wave (ii) and wave (iii) greater than wave (i). I do not know if I will ever get to see such a pattern on this scale in the rest of my life. It is truly amazing.
Prechter previously wrote that 'often' these patterns end before reaching the upper trend line. Sometimes they throw-over that line. We'll have to see what this one does but the pattern currently meets the rules for the expanding diagonal with (v) > (iii) > (i) and (iv) > (ii) with (iv) overlapping wave (i) without traveling beyond the end of (ii). And, as the pattern currently stands, within (v), c is only a little longer than equality with a.
Once the pattern ends - if it is a true diagonal - the start of the diagonal should be exceeded lower in less time than the diagonal took to form. This one took about six months to form. If we've got the structure correct that the pattern is a true 3-3-3-3-3 composition of zigzags, the rules state that it almost certainly is an ending diagonal. I may never see anything like the size of it again in my lifetime.
That said, can it go a bit higher? It can. I'm just wondering if the contracting waves at the end - with an overlap in the futures - are finishing the c wave.
Have an excellent rest of the evening,
TraderJoe
The succession of 3 wave patterns is unlike anything I have ever seen. I think the pattern is quite rare.
ReplyDeleteBtw, I have not found any mention of retrace time rules/guidelines for diagonals of the expanding variety.
ReplyDeleteAfter Fig 1-19, The Elliott Wave Principle, says,
Delete"A rising ending diagonal is usually followed by a sharp decline retracing at least back to the level where it began and typically much further. A falling ending diagonal by the same token usually gives rise to an upward thrust."
There is no distinction in the retrace between a contracting and an ending diagonal.
Yes, I have read the book at least 15 times.
TJ
How common is it to have expanding diagonal as ed. I would think that is counter intuitive. Thanks
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