Friday, October 9, 2009

Adventures in Wave Theory -- The 5-3-3-3-5 Correction



complex formations are confusing and the one I am postulating here especially so. if you abstract the 3s from the middle you could be left with an unusual 5-3-5 'running zigzag,' with the final leg of 5 waves by definition marking the culmination of the overall correction, even though it doesn't drop below the previous lows. but if you leave them in there, the final 3-3-5 portion of the pattern in itself has the appearance of an 'expanded flat,' which by definition is a corrective pattern within a bull trend.

the final 5 becomes at once a corrective sequence within an established motive sequence (eg wave 2 of 5) and a motive sequence within an established corrective sequence (eg C of an ABC). it is then, to adopt the botanical analogy, a monoecious formation.