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Timing Solutions for Swing Traders: A Novel Approach to Successful Trading Using Technical Analysis and Financial Astrology
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Timing Solutions for Swing Traders: A Novel Approach to Successful Trading Using Technical Analysis and Financial Astrology

by Robert Lee, Peter Tryde
October 2012
Intermediate to advanced
250 pages
6h 3m
English
Wiley
Content preview from Timing Solutions for Swing Traders: A Novel Approach to Successful Trading Using Technical Analysis and Financial Astrology

CORRECTIVE 3-3-5 PATTERNS

The A3-B3-C5 patterns consist of normal flats and irregular flats.

Flats

The characteristics of a normal flat are as follows:

  • Wave B terminates close to the level of the starting point of Wave A.
  • Wave C closes near the level of the terminating point of Wave A.

A flat will generally produce strong subsequent movement. A flat formation (see Figure 4.11 and Figure 4.12) may be composed of repeated flats, totaling counts of 7 or 11 waves. In a five-wave structure, when Wave 2 is a flat, the subsequent Wave 3 can be expected to be as strong as, or stronger than, Wave 1. When Wave 4 is a flat, then Wave 5 will be stronger than Wave 1 and Wave 3. In accordance with the wave principle, flats will often alternate with zigzags.

FIGURE 4.11 Example of a flat formation pattern.

image

FIGURE 4.12 Formation of a flat pattern in an A-B-C correction.

image

Irregular Flats

In irregular flats (see Figure 4.13 and Figure 4.14), Wave C tends to be the strongest and approximately equals 2.618 of Wave A.

FIGURE 4.13 Formation of an irregular flat with an elongated Wave C.

image

FIGURE 4.14 An irregular flat where Wave B retraces the entire Wave A.

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Publisher Resources

ISBN: 9781118339206Purchase book