The first one is a straightforward trade. The W then kept appearing on longer and longer timeframes, which I usually find is bullish - OK it was a slow burner but it finally delivered.
Here is what the 40 min looked like when it formed.
Now back to the 14 min., same chart as the top one, just placed here for ease of access.
It delivered more than it looks like it did because the post 16:30 candles were reduced by around 8pts on the IG cash chart, to allow for the dividend correction.
So its base is a verified support level. When it failed next day, I went Short, expecting a new EWT wave down. [ The W IMO signified the boundary between two waves, the lack of oomph after it formed led me to believe it was a corrective, so we should get a nice motive down to follow.]
What I didn't take seriously, I just wasn't in tune with the market that morning, was the second W which formed on the chart. [Now seems obvious that the wave down to the first W was a 3, followed by a corrective 4 and then a weak 5, the end of which was signified by the second W.]
The internal structure of the second W is better than the first on RSI. Just check how chunky the bodies of the candles were on Price in the second compared to the first one.
[Note to self, wave 3s can never be the shortest in an impulse wave but wave 5s can be!]
RSJ on the iii site called it perfectly. I only joined in later on the breakout OCO after the continuation W had formed.
That trade delivered the famous 0.5(20+0) and then I got a trend continuation that behaved itself perfectly.
It led to a possible EWT count that really fascinated me. The possibility became more and more probable and it was a very enjoyable experience. Again, thanks to RSJ for confirming that my count was a possibility and not some rubbish from an EWT novice.
I am convinced that the next big step forward with this system will be melding it with EWT.
cheers theory
well done, theory, with your hourly moo rivers. nice one.
ReplyDeletecatch up with you later.