This video was provided to subscribers of the daily and weekly Forex reports on the 21st January to visually highlight the underlying analysis, not only the Harmonic Elliott Wave count but integrating other analysis to provide a background of the movement that will be required to retain the current wave count and key support and resistance areas that would risk a break in the count.
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Weekly video for the week of the 21st January
Good trading
Ian Copsey
Hi Ian
ReplyDeleteon GBPUSD,wave (iii) being 418% projection of wave (i)...could we force a ratio to fit into our count?to me eyes,wave (i) and (iii) do not look "proportional" at all.in terms of look and size.
does Harmonic Elliott wave take proportionality into consideration?
Mike
ReplyDeleteYes, it is very possible to force a ratio to fit the count. This tends to happen when we (I) have a particular view - in this case the potential for an expanded flat but in fact it's not. In this case it was proven not because we didn't get the required deeper correction in Wave (iv) and that will force a change in count. At 418% - well, it's not a million % away from the 423.6% but rather than look specifically at the % it is better to look at the pip difference in addition. If 418% is 2 pips away from the 423.6% projection it's not a problem. Also, every now and then, there can be a "weirdo" projection. However, that will always raise the alarm bells and it is then necessary to make sure the rest of the related ratios fit. As I said, in this case it would have needed a pullback in Wave (iv) to satisfy alternation... and that didn't happen.
Proportionality... That's what the ratios are about... However, I can assure you that sometimes the waves don't look "right" but the ratios are absolutely spot on. As example is the S&P in the rally in October 2010 when the Wave -b- of Wave -iii- was something like 9% and didn't look like a correction at all... Most Elliotticians I saw at the time labeled the following high at 1,227.08 as the major wave ending. I know for fact that I was right because it allowed me to call the next four turning points up to 2 months in advance.
thanks Ian,learning, a student here...
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