You suggest logarithmic charts when doing Wave analysis. Sometimes I see you use linear charts in your Forecasting services. What type of chart is best for accurate 0-2 and 2-4 trendlines and why do you switch back and forth?
Logarithmic charts are ALWAYS best (in every way) to get the most reliable channeling and Fibonacci price relationships – they are crucial when a market has gained or lost 25% or more in value.
Unfortunately, programs like Excel frequently will not show any price levels on the left (except the starting bottom value) when log scale is chosen, which makes price targets difficult to determine. So, if a market has not moved more than 5-10% for an extended period, I’ll use arithmetic scales to make price levels easy for customers to see. Keep in mind, even when I present counts to the public on arithmetic charts, frequently I used Log scale charts (behind the scenes) to arrive at my scenarios.
When an X-wave is longer in price than the prior A-B-C, should it be longer or shorter in time than the prior A-B-C. In your book you state it must be longer if the X wave is larger, Yet in your videos you state that X waves should be shorter in every instance. Please could you clarify your thoughts on this.
Mastering Elliott Wave was written 30 years ago, when I had only 7 years experience analyzing and trading markets – I’ve gained a lot of knowledge since. Below are Rules for X-waves that you can depend on and which override anything written in my book (if there is contradiction).
1. You NEVER want an X-wave to take more time than the prior A-B-C, regardless of whether it is larger or smaller in price.
2. You NEVER want an X-wave to contain more monowaves than the prior A-B-C
3. You NEVER want an X-wave to be more than 161.8% of the prior A-B-C in price
If what you think is an X-wave does not adhere to the above rules, forget the X-wave idea and look for another Wave labeling solution.
In expanding Triangles, is it necessary for wave-d to “overlap” wave-b?
In all Triangles (expanding, contracting or neutral), it is essential that a portion of the price range of wave-d “overlap” a portion of the vertical price coverage of wave-b. It is also possible (especially in expanding Triangles) that the entire range of wave-b will be “engulfed” by the price range of wave-d but such behavior is not mandatory.