In a bullish trend, 4th wave must end lower than the ending of the 3rd wave?

[Raklian]

Looking at charts in your ebook especially the one on page 32, I noticed in many instances the 4th wave containing the retrending B does NOT end lower (most of your charts show a bullish trend) than the ending of the 3rd wave. This didn't make me scratch my head until I analyzed the Dow Jones charts in this forum and noticed that the 4th waves do indeed end lower than the 3rd waves (again it is a bullish trend, of course). My understanding thus far is that endings of corrective waves need to be at least below (bullish) or above (bearish) the ending of the motive wave that came before it. Am I missing something, Tom?

Joel C.

[TS Hennessy]

(01-21-2010 12:36 PM)Raklian Wrote:  Looking at charts in your ebook especially the one on page 32, I noticed in many instances the 4th wave containing the retrending B does NOT end lower (most of your charts show a bullish trend) than the ending of the 3rd wave. This didn't make me scratch my head until I analyzed the Dow Jones charts in this forum and noticed that the 4th waves do indeed end lower than the 3rd waves (again it is a bullish trend, of course). My understanding thus far is that endings of corrective waves need to be at least below (bullish) or above (bearish) the ending of the motive wave that came before it. Am I missing something, Tom?

Joel C.

Hi Joel,

As you will see from the explanation below, the examples used as
compared to the current charts reflect the true variety as well as
the structural integrity of EW formation. They show both possiblities
and adhere to the NEWR at the same time.

So digging in to your question...

The book mentions there will no longer be restrictions on the travel of
wave 4 and that is meant in light of the very inconsistent restrictions
which have been used on the COUNTER-TREND movement.

Trendward movement is handled by the NEWR and was encompassed in
existing corrective patterns already identified as Irregular.

This trendward side of 3 treatment was just not handled as a rule.

It was only an unknowable possibility and erroneously thought to be
permissable in non-RTB waves.

There were different rules at various times on 4th wave counter-trend
travel, in Elliott's own implementation, and some various adaptations of
the rules since.

If I may quote myself, "This reflects the dealing with unexpected results
and the developing nature of the system's rules without sufficient detail."

To clarify both situations ( RTB 4ths in 5 and C ) OR ( non-RTB 4ths ) :

RTB:
There is no restriction upon the movement of a 4th wave's trend
(beyond 3rd) OR counter-trend travel or termination except that
the termination of course may not exceed the start of wave 1 of
that 5th or C wave. Also the RTB 4th wave's B MUST exceed
trend travel of wave 3.

   

Non-RTB:
The 4th wave in all non-RTB waves must terminate less than the trend
progression of the 3rd wave and not exceed the start of wave 1. It may
have NO trend travel beyond that of wave 3.

These different characteristics can sometimes be a very helpful if not
the only determining factor in wave identity when detail is lacking.

They SURELY would never have been discovered without sufficient detail.