X-Account-Key: account7 X-UIDL: 1299600426.17780.mail40 X-Mozilla-Status: 0011 X-Mozilla-Status2: 00000000 X-Mozilla-Keys: Received: (qmail 17763 invoked by uid 78); 8 Mar 2011 16:07:05 -0000 Received: from unknown (HELO cloudmark1) (10.49.16.98) by 0 with SMTP; 8 Mar 2011 16:07:05 -0000 Return-Path: Received: from [98.136.45.72] ([98.136.45.72:37614] helo=n73c.bullet.mail.sp1.yahoo.com) by cm-mr23 (envelope-from ) (ecelerity 2.2.3.46 r(37554)) with ESMTP id 9F/53-27150-824567D4; Tue, 08 Mar 2011 11:07:04 -0500 DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=yahoogroups.com; s=lima; t=1299600423; bh=3uISdxuXmjzXsJ7dNeoOleLmvnlo4lHeifnglAIOnRg=; h=Received:Received:X-Yahoo-Newman-Id:X-Sender:X-Apparently-To:X-Received:X-Received:X-Received:X-Authority-Analysis:X-Cloudmark-Score:X-Received:To:Cc:References:In-Reply-To:Message-ID:X-Mailer:Thread-Index:Content-Language:X-Originating-IP:X-eGroups-Msg-Info:From:X-Yahoo-Profile:Sender:MIME-Version:Mailing-List:Delivered-To:List-Id:Precedence:List-Unsubscribe:Date:Subject:Reply-To:X-Yahoo-Newman-Property:Content-Type; b=baocff7RnuKVHMpss8WDIBTqmf+mn53+fLdgv3XW4Tx3tq/MVkzoAy99bIGfEVEtH7Z3EgB0oNC4+X1Tz1NSXE71dxFutobQganSG9UIaLk1f4nvClri/UpK2ldsYLE6 DomainKey-Signature: a=rsa-sha1; q=dns; c=nofws; s=lima; d=yahoogroups.com; b=Su0y1ga6OYMX9p+aN/SwjYtXR7H3nieP0NrXUpif6jNAqNlLvPy1UIGX9iGRlL9cNN87DtZiOuKxxGzmtQnVzrvH5/pzxeymdVHL4WXWbeF9NHCfS40MlUj+LQZyIl7t; Received: from [69.147.65.149] by n73.bullet.mail.sp1.yahoo.com with NNFMP; 08 Mar 2011 16:07:03 -0000 Received: from [98.137.34.39] by t9.bullet.mail.sp1.yahoo.com with NNFMP; 08 Mar 2011 16:07:03 -0000 X-Yahoo-Newman-Id: 12111071-m117025 X-Sender: gmorlan@tampabay.rr.com X-Apparently-To: MetaTrader_Experts_and_Indicators@yahoogroups.com X-Received: (qmail 14529 invoked from network); 8 Mar 2011 16:07:01 -0000 X-Received: from unknown (98.137.34.44) by m3.grp.sp2.yahoo.com with QMQP; 8 Mar 2011 16:07:01 -0000 X-Received: from unknown (HELO hrndva-omtalb.mail.rr.com) (71.74.56.122) by mta1.grp.sp2.yahoo.com with SMTP; 8 Mar 2011 16:07:00 -0000 X-Authority-Analysis: v=1.1 cv=+c36koQ5Dcj/1qolKHjtkYAGXvrVJRRiKMp+84F5sLg= c=1 sm=0 a=4zLIBsVzY9UA:10 a=nS+zSNEA4jtGT2g3su/Nkw==:17 a=qV0mfD4mAAAA:8 a=CjxXgO3LAAAA:8 a=ayC55rCoAAAA:8 a=4w9q55WaAAAA:8 a=IJlYwZ4x0_biGvrXQKAA:9 a=-NeVMB_yQUg-8fiZQWAA:7 a=5UZUeXXgfEZFZBrCrtX91nLkLiYA:4 a=QEXdDO2ut3YA:10 a=XkD2MMC_bxgA:10 a=ao4RW71Vw8YA:10 a=rC2wZJ5BpNYA:10 a=yMhMjlubAAAA:8 a=SSmOFEACAAAA:8 a=G_5s8neSAAAA:8 a=6aZP2EhpI4JzmamPi3AA:9 a=wxyQcbSbafJgpMgW66QA:7 a=xBtCzi9bmY16XFUzkF8hFsc2YIEA:4 a=nS+zSNEA4jtGT2g3su/Nkw==:117 X-Cloudmark-Score: 0 X-Received: from [70.125.42.184] ([70.125.42.184:3548] helo=nunswen0cecy73) by hrndva-oedge03.mail.rr.com (envelope-from ) (ecelerity 2.2.3.46 r()) with ESMTP id 01/54-24070-024567D4; Tue, 08 Mar 2011 16:07:00 +0000 To: Cc: References: <002101cbdd18$59ffa1b0$0dfee510$@rr.com> <396763.24960.qm@web120801.mail.ne1.yahoo.com> <820683.23765.qm@web120810.mail.ne1.yahoo.com> In-Reply-To: <820683.23765.qm@web120810.mail.ne1.yahoo.com> Message-ID: <00d601cbddaa$dae3c490$90ab4db0$@rr.com> X-Mailer: Microsoft Office Outlook 12.0 Thread-Index: AcvdZKCJXyAL1sTCTFe0OKxPE4a9MAAQWHqw Content-Language: en-us X-Originating-IP: 71.74.56.122 X-eGroups-Msg-Info: 1:12:0:0:0 From: "Loren Morlan" X-Yahoo-Profile: lorenmorlan Sender: MetaTrader_Experts_and_Indicators@yahoogroups.com MIME-Version: 1.0 Mailing-List: list MetaTrader_Experts_and_Indicators@yahoogroups.com; contact MetaTrader_Experts_and_Indicators-owner@yahoogroups.com Delivered-To: mailing list MetaTrader_Experts_and_Indicators@yahoogroups.com List-Id: Precedence: bulk List-Unsubscribe: Date: Tue, 8 Mar 2011 11:06:57 -0500 Subject: RE: [MT_E and I] NASDAQ 3/7/11, DAILY, PRICE IN WAVE 3 OF EW CORRECTIVE PATTERN Reply-To: MetaTrader_Experts_and_Indicators@yahoogroups.com X-Yahoo-Newman-Property: groups-email-ff-m Content-Type: multipart/alternative; boundary="----=_NextPart_000_00D7_01CBDD80.F20DBC90" X-Antivirus: AVG for E-mail 10.0.1204 [1497/3490] X-AVG-ID: ID7E51FE4F-2F22D5A ------=_NextPart_000_00D7_01CBDD80.F20DBC90 Content-Type: text/plain; charset="utf-8" Content-Transfer-Encoding: quoted-printable RSI(14).=20=20 =20 I never attempt to trade wave 1 in the daily period which is not to say tha= t it cannot be done. Wave 1 cannot be conclusively established until it fo= rms a fractal at its low as shown in the chart. Thus Wave 1 must be fully = complete before I am able to recognize that fact in the daily period. Howe= ver, Wave 1 is presently underway in the next larger period, weekly and I w= ill trade that larger wave 1. Wave 1 in the weekly is examined and followe= d in the daily period. In this respect price and RSI have completed wave 1= and 2 and is presently tracing wave 3. After waves 3, 4 and 5 in the dail= y are complete in the daily period this will conclusively establish the low= of wave 1 in the weekly. These are the bigger waves which are lower risk = to trade. =20 A bit confusing perhaps but the way RSI/price must be examined and followed= to accurately understand future price action. RSI/price action in the dai= ly are always tracing some part of the next larger weekly EW cycle.=20 =20 Having stated the above it is possible to trade wave 1 in the daily but to = do so requires use of lower time periods and a much more complicated method= to trade this typically very short wave 1. As a practical matter it just = isn=E2=80=99t worth the effort or risk to do so. =20 Loren =20 From: MetaTrader_Experts_and_Indicators@yahoogroups.com [mailto:MetaTrader_= Experts_and_Indicators@yahoogroups.com] On Behalf Of Brian Kett Sent: Tuesday, March 08, 2011 2:41 AM To: MetaTrader_Experts_and_Indicators@yahoogroups.com Subject: Re: [MT_E and I] NASDAQ 3/7/11, DAILY, PRICE IN WAVE 3 OF EW CORRE= CTIVE PATTERN =20 =20=20 Loren, One more question, pls. How do you identify the wave 1? Brian _____=20=20 From: Brian Kett To: MetaTrader_Experts_and_Indicators@yahoogroups.com Sent: Tue, March 8, 2011 8:22:08 AM Subject: Re: [MT_E and I] NASDAQ 3/7/11, DAILY, PRICE IN WAVE 3 OF EW CORRE= CTIVE PATTERN =20=20 Loren, That's interesting and nice identifying the wave 3 with RSI. Are you using = the std. RSI (14)? Brian =20 _____=20=20 From: Loren Morlan To: Divergence@yahoogroups.com Sent: Tue, March 8, 2011 12:38:13 AM Subject: [MT_E and I] NASDAQ 3/7/11, DAILY, PRICE IN WAVE 3 OF EW CORRECTIV= E PATTERN =20=20 Attached daily chart traces RSI left shoulder and head of an upright head a= nd shoulder price pattern. Highest RSI value always located Wave 3 high, L= S. There is always a RSI CND between the LS and Head.=20=20 =20 Wave 5 price fractal high met resistance at Fibonacci extension 1.902, whic= h also coincided with a long developing bearish crab price pattern traced i= n light yellow. Yes, price patterns are important with respect to their pr= edictive implications. Also at this high RSI traced the required CND menti= oned above. These are objectively established facts which conclusively id= entifies wave 5 high.=20 =20 One of the issues which is not conclusively established at this time is whe= ther corrective wave 1 (blue) is an impulse wave having 5 waves or a correc= tive wave having three waves. I have examined wave 1 using the 15 minute = period RSI and believe, although I am not positive, price and RSI traced an= d impulse 5 wave pattern. (I am confused and uncertain by a truncated wave= 5.) This issue is very important because it tells the analyst the type pa= tterns which will later be traced by price and RSI. If for example wave 1= was a 3 wave corrective pattern then later larger waves will also trace th= e same 3 wave patterns. In this case it is my opinion at this time that p= rice and RSI will trace the typical 5 wave pattern lower to Wave A low. = In any case future waves will more clearly establish whether price is in fa= ct tracing a 5 or 3 wave cycle. This issue will be later resolved.=20=20 =20 I have previously posted a =E2=80=9Ccheat sheet=E2=80=9D which describes th= e various corrective patterns traced subsequent to wave 5 high. Only one o= f the eight patterns traces an impulse 5 wave pattern, namely a ZigZag whic= h is one of the more common patterns. However price and RSI may trace one = of the other 7 patterns which are all introduced by 3 wave corrective patte= rns, not 5 wave.=20 =20 I tentatively conclude that Wave 1 was impulsive (1st of 5) and have drawn = future waves which constitute the full 5 wave cycle down to Wave A.=20=20 =20 Regarding Wave 2 (blue) this corrective wave is always a 3 wave price patte= rn, a, b and c., that pattern can be better visualized in the 4 or 1 hour = periods for those interested. =20 The low of Wave A when conclusively established will introduce wave B which= is always a 3 wave, a, b c pattern to its high. Wave B high will be the r= ight shoulder high and there will be a CND between the left and right shoul= ders. Wave B high will introduce Wave C typically the longest corrective w= aves which may be extended as shown in the cheat sheet.=20 =20 RSI at Waves 3 and 5 both trace =E2=80=9CM=E2=80=9D above the RSI 70 line a= nd each therefore suggest higher price. These are consistent with each Wav= e high. Certainly in the case of Wave 3 high we may expect price to move h= igher incident to establishing Wave 5 high. In the case of later =E2=80=9C= M=E2=80=9D at small 5/5, this tells the analyst that price will probably es= tablish an extended 5 which later occurred. RSI tracing =E2=80=9CM=E2=80= =9D above its 70 line (grossly overbought) tells the analyst extreme buying= pressure which most often results in later price highs. But like all gene= ral rules not always. Where =E2=80=9CM=E2=80=9D occurs in the EW cycle as= pointed out here is important with respect to higher price. The exact opp= osite of these observations occur at lows and =E2=80=9CW=E2=80=9D below the= 30 line.=20 =20 Weekly chart traces an entirely different 5 wave impulse pattern to Wave 5 = high and is further confirmation of that high in the daily. =20 Comments; I only trade equities using EFTs and am interested in the NASDAQ since it i= s generally the leader of down or up cycles and thus use the charts for tha= t purpose. =20 Trades are based on conclusively established objective facts which documen= t price/RSI location within the EW cycle. RSI measures the internal streng= th or weakness of a security and therefore conveys the most valuable inform= ation about price action.=20 =20 Wave one is almost always the most difficult wave to recognize in real time= Why? Many traders erroneously believe Wave 1 is just a retrace in an = ongoing price move higher or lower ( in this example higher). Those misgui= ded bulls are buying waves a and c believing that price will exceed the p= revious price high at Wave 5. Wave 1 often is not very long because the m= istaken bulls aggressively buy that retrace. Once a fractal high in the = daily period establishes Wave 2 high (3 wave only) bulls stop their efforts= to force price higher and wave 3 begins in earnest. =20 I assert that RSI and fractals are without any reasonable doubt the most ac= curate and capable oscillator with respect to EW and divergences identifica= tion in the hope that some analyst will challenge this contention. If I a= m wrong in this respect I welcome others input. The only other indicator w= hich does not violate the rule against multicollinearity is MACD when used = with RSI.=20=20 =20 Loren=20 =20 =20 =20 ------=_NextPart_000_00D7_01CBDD80.F20DBC90 Content-Type: text/html; charset=UTF-8 Content-Transfer-Encoding: quoted-printable  
=20=20=20=20=20=20 =20=20=20=20=20=20

RSI(14).=C2=A0

 

I never attempt to trade wave 1 in the daily per= iod which is not to say that it cannot be done.=C2=A0 Wave 1 cannot be conc= lusively established until it forms a fractal at its low as shown in the ch= art.=C2=A0 Thus Wave 1 must be fully complete before I am able to recognize= that fact in the daily period.=C2=A0 However, Wave 1 is presently underway= in the next larger period, weekly and I will trade that larger wave 1.=C2= =A0 Wave 1 in the weekly is examined and followed in the daily period.=C2= =A0 In this respect price and RSI have completed wave 1 and 2 and is presen= tly tracing wave 3.=C2=A0 After waves 3, 4 and 5 in the daily are complete = in the daily period this will conclusively establish the low of wave 1 in t= he weekly.=C2=A0 These are the bigger waves which are lower risk to trade.<= o>

=  

A bit confusing perhaps but the way RSI/price must be examined and follo= wed to accurately understand future price action.=C2=A0 RSI/price action in= the daily are always tracing some part of the next larger weekly EW cycle.=

<= o> 

Having stated the above it is possible to trade wave 1 in the daily but = to do so requires use of lower time periods and a much more complicated met= hod to trade this typically very short wave 1.=C2=A0 As a practical matter = it just isn=E2=80=99t worth the effort or risk to do so.

 <= /font>

Loren

 <= /span>

From: MetaTrader_Experts_and_Indic= ators@yahoogroups.com [mailto:MetaTrader_Experts_and_Indicators@yahoogroups= com] On Behalf Of Brian Ke= tt
Sent: Tuesday, March = 08, 2011 2:41 AM
To: Met= aTrader_Experts_and_Indicators@yahoogroups.com
Subject: Re: [MT_E and I] NASDAQ 3/7/11, DAILY, PRIC= E IN WAVE 3 OF EW CORRECTIVE PATTERN

 

 

Loren,
One m= ore question, pls. How do you identify the wave 1?

=

Brian

From: Brian = Kett <brian.kett@yahoo.com>
T= o: MetaTrader_Experts_and_Indicators@yahoogroups.com
Sent: Tue, March 8, 2011 8:22:08 AM=
Subject: Re: [MT_E and = I] NASDAQ 3/7/11, DAILY, PRICE IN WAVE 3 OF EW CORRECTIVE PATTERN

 

Loren,
That's interesting and nice identifying the wave 3 wit= h RSI. Are you using the std. RSI (14)?
Brian

<= span style=3D"font-size:12.0pt;"> 

From: Loren = Morlan <gmorlan@tampabay.rr.com>
To: Divergence@yahoogroups.com
Sent: Tue, March 8, 2011 12:38:13 AM
Subject: [MT_E and I] NASDAQ 3/7/11, DAI= LY, PRICE IN WAVE 3 OF EW CORRECTIVE PATTERN

 

Attached daily chart tr= aces RSI left shoulder and head of an upright head and shoulder price patte= rn.  Highest RSI value always located Wave 3 high, LS.  There is = always a RSI CND between the LS and Head. 

 

Wave 5 price f= ractal high met resistance at Fibonacci extension 1.902, which also coincid= ed with a long developing bearish crab price pattern traced in light yellow=   Yes, price patterns are important with respect to their predictive = implications.  Also at this high RSI traced the required CND mentioned= above.   These are objectively established facts which conclusiv= ely identifies wave 5 high.

 =

One of the issues which is not con= clusively established at this time is whether corrective wave 1 (blue) is a= n impulse wave having 5 waves or a corrective wave having three  waves=   I have examined wave 1 using the 15 minute period RSI and believe, = although I am not positive, price and RSI traced and impulse 5 wave pattern=   (I am confused and uncertain by a truncated wave 5.)  This iss= ue is very important because it tells the analyst the type patterns which w= ill later be traced by price and RSI.   If for example wave 1 was= a 3 wave corrective pattern then later larger waves will also trace the sa= me 3 wave patterns.   In this case it is my opinion at this time = that price and  RSI will trace the typical 5 wave pattern lower to Wav= e A low.   In any case future waves will more clearly establish w= hether price is in fact tracing a 5 or 3 wave cycle.  This issue will = be later resolved. 

 

I have previously posted a =E2=80=9Cc= heat sheet=E2=80=9D which describes the various corrective patterns traced = subsequent to wave 5 high.  Only one of the eight patterns traces an i= mpulse 5 wave pattern, namely a ZigZag which is one of the more common patt= erns.  However price and RSI may trace one of the other 7 patterns whi= ch are all introduced by 3 wave corrective patterns, not 5 wave.

 

I tentatively conclude that Wave 1 was impulsive (1st of 5) a= nd have drawn future waves which constitute the full 5 wave cycle down to W= ave A. 

 <= o>

Regarding Wave 2 (blue) this corrective wave is a= lways a 3 wave price pattern, a, b and c.,  that pattern can be better= visualized in the 4 or 1 hour periods for those interested.<= o>

 

Th= e low of Wave A when conclusively established will introduce wave B which i= s always a 3 wave, a, b c pattern to its high.  Wave B high will be th= e right shoulder high and there will be a CND between the left and right sh= oulders.  Wave B high will introduce Wave C typically the longest corr= ective waves which may be extended as shown in the cheat sheet.

 

RSI at Waves 3 and 5 both trace =E2=80=9CM=E2=80=9D above the RSI 70 line= and each therefore suggest higher price.  These are consistent with e= ach Wave high.  Certainly in the case of Wave 3 high we may expect pri= ce to move higher incident to establishing Wave 5 high.  In the case o= f later =E2=80=9CM=E2=80=9D at small 5/5, this tells the analyst that price= will probably establish an extended 5 which later occurred.  RSI trac= ing =E2=80=9CM=E2=80=9D above its 70 line (grossly overbought) tells the an= alyst extreme buying pressure which most often results in later price highs=   But like all general rules not always.  Where  =E2=80=9CM= =E2=80=9D occurs in the EW cycle as pointed out here is important with resp= ect to higher price.  The exact opposite of these observations occur a= t lows and =E2=80=9CW=E2=80=9D below the 30 line.

=

 

Weekly chart= traces an entirely different 5 wave impulse pattern to Wave 5 high and is = further confirmation of that high in the daily.

 

Comments;

I only trade equities using EFTs and am = interested in the NASDAQ since it is generally the leader of down or up cyc= les and thus use the charts for that purpose.

 

Trades are based = on conclusively established  objective facts which document price/RSI = location within the EW cycle.  RSI measures the internal strength or w= eakness of a security and therefore conveys the most valuable information a= bout price action.

 

Wave one is almost always the most difficul= t wave to recognize in real time.   Why?   Many traders= erroneously believe Wave 1 is just a retrace in an ongoing price move high= er or lower ( in this example higher).  Those misguided bulls are buyi= ng   waves a and c believing that price will exceed the previous = price high at Wave 5.   Wave 1 often is not very long because the= mistaken bulls aggressively buy that retrace.    Once a fra= ctal high in the daily period establishes Wave 2 high (3 wave only) bulls s= top their efforts to force price higher and wave 3 begins in earnest.

 

I assert that RSI and fractals are without any reasonable doubt the= most accurate and capable oscillator with respect to EW and divergences id= entification in the hope that some analyst will challenge this contention.&= nbsp;  If I am wrong in this respect I welcome others input.  The= only other indicator which does not violate the rule against multicollinea= rity is MACD when used with RSI. 

 

Loren =

 

=  

 

=

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