Last post I posted here was changed the next day on my site.

Let's look at two subjects, contrarian or alternation, and labeling waves.

Labeling waves.

I agree with Glenn Neeley on this subject. That the majority of the time the extreme high or low called fractals by Bill Williams is not the end of the wave pattern most of the time. So when I see those that label it that way most of the time. I ask myself if there are making a generalization of the market opinion, or do they actually not know wave principles?

The rule of alternation.

Most will discuss how wave two has to differ to wave four and wave -a- to wave -c-, but never put emphasis on the definition of alternation.

I like to call it contrarian and it fits the interpretation quite well. The rule of alternation defines each wave pattern will be more different from the previous wave pattern as much as possible and yet fall within the confines of Wave Principles.

It is like that contrarian or hippie in my day. What ever the norm was they put a twist or two to the norm to be different. That loud tie, long hair, baggy pants, or spike and sometimes your not sure weather girl or boy? That is the markets changing things up all the time to be different that leaves questions?

Robert Miner has said, "that labeling every turn in the market would require a three martini lunch and a few laughs." He was referring to small frame charts. But, I believe it could apply to the idea of alternation or contrarian principle.

With out some real comptemplation by the analyst on this principle they will never get their waves or count accurate. Worst yet, find their wave charts very hard to trade. In analyzing the analyst must always be looking for different patterns that fall with in wave principles.

By this rule alone it requires an analyst to make many rules for all the contrarian situations or to look at the broader picture and make fewer rules.

Robert Miner and Glenn Neeley both have many rules and stipulations to their principles involving their area of research on the subject. Bill Williams took a more simplified approach.

For trading purposes I like to use trend lines to identify turn points and label every thing in those trend lines as an wave pattern. That opens the analyst's eyes to the contrarian patterns and yet keeps the analysts mind and labeling within the confines of wave principles. It brings a scientific or objective approach or basis yet allows for the subjectivity or art in the market analysis.

Keeping the whole process simple without a book of rules yet scienticfically or rule bound.

This allows for both the objectivity/science in the market and the subjectivity/art of the contrarian market and trader.

The market has turned the corner and confirmation will be made when it breaks the daily trend line or 1373 or a very distinct -12345- pattern being developed. It has started a very solid pattern, but needs at least a good start on the third wave before validation can be claimed.

charleydan
www.sillywaves.blogspot.com