| JAN 1990
Trading five-wave reversals by Dan Akin Dimock
Trading five-wave reversals by Dan Akin Dimock Where is the best place to enter a trading or longer-term investment position within the entire five waves up/three waves down cycle of any market? How is the starting point recognized before the action begins? The Elliott Wave Theory may provide the answers. Let's not kid ourselves. Trading is extremely risky. What method, other than Elliott Wave, provides error recognition by allowing the trader to know in advance what sequential events must follow for the trade to be successful and, by their failure to occur, alerts the trader to exit the trade before much, if any, damage is done? Elliott Wave also makes it possible to differentiate between main trend and countertrend (bear) markets. This is because g five-wave advances will occur in the direction of the main trend and these, when concluded, are always opposed by three countertrend waves of like degree (the 5/3 pattern). Therefore, movements limited to three waves occur only within the corrective phase of a market. The concluding 5/3 wave — wave C in Elliott Wave nomenclature — signifies that a new primary trend or, at minimum, a good opportunity is next. One tip-off that this third wave is concluding is its distinctive ""signature"" — it subdivides into five waves within the zigzag or flat corrective patterns. When wave C occurs within the triangle corrective pattern, however, it subdivides into three waves.
by Dan Akin Dimock
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.