Geometric Proportion in Market Data
Figure 1.1 helps me continue the discussion about balance and proportion that began in the Introduction. In my experience, the traders who struggle with the Elliott Wave Principle (EWP) do not see critical elements within price data. As example, one of the considerations about the health of a trend is to always be aware of the length of the longest bar in the time horizon of interest. Figure 1.1 is a monthly chart of General Electric. The longest bar in the uptrend is marked by an arrow and the number ‘1’. However, in a single month a decline developed from the high at ‘2’ that exceeded the length of bar ‘1’. Some of you will not be able to see this, so use the boxes drawn to the left of the chart. The height ...
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