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Thursday, September 29, 2011

Calling Again Megaphone Bottom in SPY ( Really 2 Bottoms)

 This 60 min chart,2 months, show the BIG megaphone bottom. 2 Months and waves 3,4 and 5 (blue)
This 60 min chart,1 month, show the LITTLE megaphone bottom.1 month and the 5 finaly waves of wave 5 (blue).
If two of this megaphone bottom pattern doesn't work, what can work.

5 comments:

  1. Peru,
    It can very well be a top, any reason to call it a bottom?

    ReplyDelete
  2. Hello Jz
    Yes, this pattern is for bottoms and tops. In this case, we have a Primary Top with wave B up and, now, I think we are in a primary wave C down with 3 intermediate waves a,b c. Wave a(green) could be the first and that's why I have call a Bottom. really don't know if a is an intermediate wave or one of minor degree.
    You can see my post: http://perutradercharts.blogspot.com/2011/09/spxveryveryvery-and-long-term-ew-count.html
    and how I have label my EW count, beguining in 1924.
    Thank you for reading my blog.

    ReplyDelete
  3. Hi Peru,
    Just found out your site yesterday. I like your NYAD method. could be very useful for daytrading. but I do not have NYAD intraday chart. what charting tool are you using.

    I have trouble understanding your wave counts. But I am not a EW person. So... but, typically, wave 3 and wave 5 should be the longer ones. Your count does not see to comply with this rule. your wave 5 way too short.
    Any explanation?

    ReplyDelete
  4. Hi Peru,
    To continue from my last comment.

    In fact, using your count, it seems that we are in the middle of wave 5, which should end much lower.

    I am bullish today so I would hate it if that is the case, but I do not have a better explanation.

    awaits your answer.

    ReplyDelete
  5. Hi Jz,
    First,thx for your question because allows me to test my ideas.
    $Nyad advance-decline issues is,for me, one of the best "psychological"indicators to weight the bullish and bearish mood of the market and I used always. I use Stockcharts and typing $Nyad you can search it easily.
    EW rule 2 says "wave 3 can't be the smaller", normally is the bigger but in some cases we have extended 1 or 5,which will be the greater.Only one of them. In this case, wave 5 is very choppy and difficult to count and there is ,maybe, the diferents counts. In this post you can see my count and follows rule 3: " Wave 4 never penetrates wave 1 territory":http://perutradercharts.blogspot.com/2011/09/megaphone-bottom-in-spy.html
    I have call for a bottom and for the end of wave 5 with my count, which I think, follows EW rules.
    TA help but Markets have,always, the last word.My bet is to beat the markets the most of the times,but knowing that I will loose sometimes or a lot of times?

    ReplyDelete