Technical Analysis of Financial Markets

Sunday, October 19, 2008

4th-Wave Triangle ?

Since mid-August 2008, the Dow has declined 33% projecting a three wave Elliott decline. Current price action is consolidating into a corrective triangle pattern which ought to conclude the formation of wave IV. Usually, as triangles occur as part of the fourth wave, the market thrusts out of the triangle in the same direction as the third wave III; this marks the beginning of the final fifth wave V towards new lows.

No comments: