DOW drops 200 points in lock step with wave count!

By: Enda Glynn | Wed, Jul 19, 2017
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DOW drops 200 points in lock step with wave count!

USDJPY

30 min



4 Hours



Daily



My Bias: LONG

Wave Structure: rally in wave [C]

Long term wave count: wave [C] is underway, upside to above 136.00

Important risk events: JPY: Monetary Policy Statement. USD: Housing Starts, Building Permits, Crude Oil Inventories.

I have altered the wave count today,

to what I think is the next best fit labeling

given the fall off the recent high.

This new interpretation is possibly even more bullish than before,

The extent of the decline off the recent high now labelled wave (i) green at 1.1449,

was larger than expected in the previous wave count.

Todays low is now labelled wave (ii) green.

The decline has traced out a double combination wave structure.

Todays low reached 111.68.

The 50% retracement level lies at 111.64, a 4 pip difference.

So:

This sets up another bullish opportunity in wave (iii) green,

should this wave count prove correct.

At this point the 4hr momentum indicators are again reaching an oversold extreme,

Form here,

I am looking for a clear 5 wave rise off todays low,

That may happen over the next couple of days.

DOW JONES INDUSTRIALS

30 min



4 Hours



Daily



My Bias: market topping process ongoing

Wave Structure: Impulsive 5 wave structure, possibly topping in an all time high.

Long term wave count: Topping in wave (5)

Important risk events: USD: Housing Starts, Building Permits, Crude Oil Inventories.

Last nights wave count called for a decline in wave 'c'

With the initial target set at 21436.

The DOW tumbled 200 points today and reached a low of 21465.

This action again points to the value of a good working knowledge of the wave principle.

And the opportunities it can unlock when no-one else expects them.

The market has again rallied higher in the beginning of a possible wave 'd' pink.

Wave 'd' pink is projected to meet the trendline in the region of 21625.

And again the rally should occur in three waves.

Wave 'a' blue looks complete at the evening highs of 21575.

The contracting triangle model has worked well so far,

But just in case the rally extend higher than 21681,

The alternate wave count is shown circled in red, on the short term chart.

For today,

Watch for the completion of wave 'd' pink, and a possible turn into wave 'e' to complete the triangle.

By Edna Glynn


 

Enda Glynn

Author: Enda Glynn

Enda Glynn
bullwaves.com

Enda Glynn

I class myself as an Elliott wave trader now, but that's not how I started out though! It took me a long time and a whole lot of pain, to finally understand what drives the price and how to use Elliott Wave correctly!

I have been trading for years and I have tested every trading system and strategy under the sun! I used to pick entry points at random based on emotion or news events or something I heard on TV! It did not take long to destroy my capital! I have blown out my account balance before, and I had to start again,

from scratch!

Believe me, I am well acquainted with failure in trading! Im sure that the above scenario is pretty familiar to you too. We have all been there. About 10 years ago I discovered The Elliott wave Principle and its method of market analysis. Since then, I have spent years learning, testing and trading, using the wave principle as the backbone of my analysis. I even went to college to study macroeconomics and econometrics. I graduated with honours degree back in 2012. The financial market knowledge and statistical edge I gained after my degree added another level to my trading. The difference in my trading approach using the wave principle, compared to before, is like night and day.

The price started to move "my way" more and more often. The wave model, offers me a lens to view market action through, which no other form of analysis can do. Elliott wave analysis, helps me answer four key questions when I am contemplating a trade:

• What direction the price is trending.
• How far is this trend likely to go.
• Where can I enter a trade with the best risk reward ratio.
• And most importantly, at what point am I definitely wrong?!

The wave principle helps me improve my trade entry, tighten up my money management and in turn increase profitability. Seeing the waves unfold before your eyes is a very rewarding experience, It is almost like peering into the future! That is how the wave principle helps my trading, and that is why the wave principle will improve your trading. It took a long time to finally master Elliott Wave Principle. After over a decade of hard work, research and learning I can call myself an expert in the field. I regularly contribute to major trading communities at FXStreet, Forex Factory, Traders Planet. I am a chief Elliott Wave analyst at HumbleTraders.

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