Now on my site I went over some time theory. I am not a big fame of time theory per se. I have used Dynamic Trader for several years doing my utmost to get 80% accuracy out of it. No avail. The designer of the software claims 50% accuracy. It is good when it works out, but I like a little higher rating.

I do find that trendline bring some accuracy to time consistently, but still working on the concept. The basic idea behind it is target and trendline crosss is the time of completion.

Back to todays analysis.

The trendlines on the daily and on this chart have contained the market. Therefore, it is all labeled as one wave pattern. It also gives us where turning points are at.

I labeled it this way, but some analysts may say to much time for wave four symetry. If that is true we are already in wave three. The reason I labeled it the way I did is first trendline off of wave -1-2- and wave four touched it. One confirmation is how slow the market moved after that. Wave -3-'s are to move fast or at least faster then the first wave. The second confirmation is that it should not clear very much above todays high for verification.
One more confirmation is breaking trendline. Anytime the market breaks trendline the next up is the end for that wave high. Not for the whole wave structure, just another wave pattern and your labeling will tell you which one that is.

The market should not go below the horizontal blue line for wave -c- or end of wave -2-.

Yes, if this becomes a running -2- wave the low of -a- will be the lowest part and there will be no return. The trendline on chart will hold and need adjusted just slightly to the data there.

charleydan
www.sillywaves.blogspot.com