Our triangle ended at 4863.87 points. The bull guys are happy about is the progressing impulse wave shown here.
So far we have waves 1,2, an extended wave 3 and a wave 4.
Like below:
Wave sizes:
Wave 1 = (5022.36-4863.87) = 158.49
Wave 2 = (5022.36-5003.78) = 18.58
Wave 3 = (5406.39-5003.78) = 402.61
Wave 4 = (5406.39-5216.96) = 189.43
Golden ratio relationships:
Wave 3 = Wave 1 X Fib. 2.618 = 414.93.
Accurate to within 12 points.
Wave 4 is about half wave 3.
Also notice alternation between waves 2 and 4.
Wave 2 is shallow and wave 4 goes deeply into wave 3.
Quote:Alternation
The guideline of alternation is very broad in its application and warns the analyst always to expect a difference in the next expression of a similar wave. Hamilton Bolton said,
The writer is not convinced that alternation is inevitable in types of waves in larger formations, but there are frequent enough cases to suggest that one should look for it rather than the contrary.
Elliott Wave Principle: Key To Market Behaviour.
Quote:Alternation Within Impulses
If wave two of an impulse is a sharp correction, expect wave four to be a sideways correction, and vice versa
Elliott Wave Principle: Key to Market Behaviour.
The target of 5473.4 is obtained following the guideline of equality which states that if wave 3 is extended then expect wave 5 to be related to wave 1 by equality. Failing equality, a Fibonacci multiple should be applied.
Thus:
Wave 1 = 158.49
If wave 5 = Wave 1, then wave 5 should end at 5375.
Since this level has been surpassed the next target is:
Wave 1 X 1.618 = 158.49 X 1.618 = 256.44 points.
Added to wave 4 low gives a target of 5473.4 i.e [5216.96 + 256.44]
Conventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.