I've been following NG since EWI offered it on free week. This is a continuation of the count they had before the free trial was over. Prices could turn at anytime since we are at the 61.8% retracement of the previous wave and within the 31.2 to 61.8% typical time extension for a correction. However, a perfect setup would be on 8/3 at the 61.8% time extension, the 78.6% price retracement, and where C = 1.618 X A at just over $5. Trading under $4.65 before $5 would likely signal the sell off in W3 has started. Pricing has diverged with RSI on the hourly so it's going to be a chore to get above $5 I would think. All this conjecture is based off EWI's count and remains valid as long as W2 is not exceeded. Right now it looks good, C even looks like a ED to me. If EWI is right, a 3rd of a 3rd is next which is the EWer's dream. (As a reader suggested, 4ths aren't supposed to overlap 1sts. They claim expanding diagonal triangle. EWI call, not mine)
3 comments:
seems to me that where you have labeled waves 3 and 4, those points need to be 1 and 2 of the 3rd wave, that is, 1 and 2 of one lesser degree than the first 1 and 2.
The way you have it labeled, waves 4 and 1 overlap which is not allowed in EW unless the wave is an ending or leading diagonal.
There are a couple of other ways as well to count here that would not violate that EW rule.
My labeling came straight from EWI, they called it a expanding diagional triangle. Looks like it has a extended 5th, huh? Anyway, those are the labels they used during the free week. I assume they didn't violate the 4th overlap rule if it is what they say it is triangle and all. Interesting though, no matter the labels if it gets in the box I suggested it would be a low risk, high reward short. It would take balls to short it there, but usually those are the best trades.
thanks for the reply, Repo. Expanding diagonals are new to me. I've seen expanding diags diagrammed before, but this one is even stranger than those!
Good luck with the trade!
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