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I thought the US Dollar chart looked familiar!

Written by Mark S.
December 5th, 2009at 9:58 pm

 

ZigZag.Flat.USD.Dec 5 2009

We are experiencing what I believe is a classic zig-zag followed by a flat pattern.
The above chart is the classic pattern from the book- Elliott Wave Principles by Frost and Robert Prechter. I highly recommend it. Do a search on the Amazon search box at my site to find the best price.
I did have to flip it around to match our direction in the index.
As you can see the match is uncanny and scary if you are long in the stock market.
But the longs should have one more brief treat to finish off wave 5, then it’s downhill for many months.
The bears are going to think we are going through P3 when the markets collapse because of it’s intensity. But contrary to the majority I believe we only had 3 waves down. This rally is an irregular triangle wave D and the next crash will be the completion of the triangle wave E on a 10 year time scale. The best way to see it is view my chart for the Nasdaq Composite.

GL traders
Mark

Content on CEO Trader is opinion only, please trade at your own risk.

http://ceotrader.blogspot.com

Labels: Elliott wave, Fibonacci, technical analysis, daily, stocks, ETF, chart, indicators

Categories: Charts ,Commentary ,Data-Based Indicators ,Elliott Wave ,Exclusive ,Markets

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4 Responses to “I thought the US Dollar chart looked familiar!”

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  1. Mr. Trader Mr. Trader says:
    December 6, 2009 at 9:15 pm

    I agree that the USD is likely to embark on a very strong move upwards in the near future, but im not sure how you would count what appears to be a final w5-down on your chart.

    thanks for sharing

    Reply
    • mark mark says:
      December 7, 2009 at 1:08 am

      The fall in the dollar from March is a fifth wave extension impulse pattern. Usually the 5th has well defined 5 waves. So far we had 4 followed by three sub waves. So you’re right, the fifth wave may never come as Japanese intervention could put the brakes on further downside. Thx for your comment

      Reply
  2. miramarbeach miramarbeach says:
    December 6, 2009 at 4:19 pm

    Thanks, great chart. Is there a price where your count would be eliminated on a LT basis?

    Reply
    • mark mark says:
      December 7, 2009 at 1:32 am

      Thanks miramarbeach. The concept of the zigzag followed by a flat is a positive biased pattern. In the book it was negative biased since the pattern was flipped around. This means the price can not exceed the March lows in 2008 to be valid.

      Reply

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