New rules, but what about old rules?

01222010, 10:51 PM
Post: #1




New rules, but what about old rules?
Hi, There, I read your Ebook with great interest and more than a little skepticism, therefore I was almost annoyed when your method appeared to work perfectly the first two times I used it. But then I thought again, the areas of EWT which I knew there were problems with were extensions, truncations and wave 14 overlaps and your method on the face of it sidesteps these.
Can you confirm whether it is ok not just for a wave 4 to overlap the top of wave 1 (in a rising market) but also for wave 4 to test lower than the bottom of wave 2 (again in a rising market)? Also as you don't count extensions am I right in saying that as soon as wave 3 is retraced sufficiently to overlap the top of wave 1 then you start counting a,b,c of wave 4 from that point onwards? Finally do you still retain the rule that wave 3 can't be the shortest of motive waves 1,3 or 5? Thanks for your help P.S Do you have any long term count worked out for the S&P? 

01222010, 11:38 PM
Post: #2




RE: New rules, but what about old rules?
(01222010 10:51 PM)Steely Dan Wrote: Hi, There,Heh! I love Steely Dan. Quote:I read your Ebook with great interest and more than a little skepticism, therefore I was almost annoyed when your method appeared to work perfectly the first two times I used it.COOL! Of course it works, not because of anything I came up with but because that is how THEY work.  OH I'll be quoting you on that one. Well said! Quote: But then I thought again, the areas of EWT which I knew there were problems with were extensions, truncations and wave 14 overlaps and your method on the face of it sidesteps these.Yes I can confirm that wave 4 sometimes can and sometimes WILL overlap wave 3 and down to no further than start of wave 1 which of course includes all of wave 2. Of course it doesn't have to. This applies to both types of 4th wave, RTB and nonRTB. It also does not matter if the market is rising or not. Quote:Also as you don't count extensions am I right in saying that as soon as wave 3 is retraced sufficiently to overlap the top of wave 1 then you start counting a,b,c of wave 4 from that point onwards?Well there is definitely still the nasty little thing called a 'correction' and if you don't count wave A out, then by the time you are into C you will likely get fooled twice rather than once. So what I do is count rather than get suckered by my tendency to want to just draw a line. Well almost always. The thing to remember is to include the RTB in wave c of 4 of A and wave 5 of A so you start your C at the right spot. Quote:Finally do you still retain the rule that wave 3 can't be the shortest of motive waves 1,3 or 5?Yes absolutely. 3 is never shortest. Quote:Thanks for your help You are welcome. We are working on it. (PS. Remember I am just getting back into counting for this project and I have another trader community as well but I did find something on GBP/USD which was determinate on the weekly so we can get something on the woefully scant history in Forex). There is another thread with a pic which discusses this here: http://newelliottwaverule.org/forums/thr...html#pid79 TS Hennessy 

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