Value of Perfect Information

This chart is all about time ~ with one important caveat. Remember we are not responsible for the movement of ES but we can analyze what it does. Wave 4’s are unpredictable except for the guideline of alternation which applies here. That simply means that if W2 is a simple Zig-Zag (ABC),  then expect W4 to be a complex correction. Complex correction is another term for “beat the tar out of you if you trade it!” Remember, I said to do as I suggest not as I do. I never did take my own advise well. Anyone who tells you they picked up 10+ points today probably has a bridge to sell you too.

One of the greatest obstacles I have to overcome as a trader is my lack of patience. We know where you are going market  ~ so go there! That is why I love the MOB and Ellipse studies. They have a time function. Fibonacci time projections are also useful. On this chart, I’ve combined fib time with my expected retracement for W4 to get a target zone (highlighted in green). If, and I do mean if!, we are in the W4 we’ve been waiting for, then this is a good target to keep before us.

Comments are always welcome and even constructive criticism. When you ask questions, I’d really appreciate a chart to go along with it when appropriate. It really helps me see exactly what you are talking about! I hope to do some longer term analyses this weekend, but it’s my Grandson’s birthday and I may have a hard time finding time.

Categories: Markets