OK, let’s roll back the chart (using the chart replay mode) to take a more detailed look at this setup, as it is my favourite setup.
As you can see, we have a 3-swing (ABC) correction coming after an “initial decline” off an “prior high”. In other words in Elliott Wave terms this should be considered a Wave (2) correction. As I have mentioned before – what comes after a Wave (2) ? Exactly a strong Wave (3) type swing. This is why this is my favourite setup because very often we get a strong move of this setup.
As you can see, the only question was whether the Wave (2), TS1 setup should, be considered as it made a “double top” with the prior high. So is a double top still a correction ? In the early days of MTP I used to say No, that is why the RT add-ons need a correction to be “less than” the prior high. But I have amended this in V6.0 to say it can be “less than or equal to”, as I have found than many times a good move can come off a double top / bottom. This is what we have in this example.
Either way, this still fulfils the general concept behind the TS1 setup in that we have a important top that is followed by an initial, decline, that is then followed by a 3-swing, abc, correction. As I say, this is my favourite trade setup and one that I am always on the lookout for.
Thanks, Steve
PS, I will also take a good look at this setup in my customer Advanced trading webinar later today (MTP customers only)
As you can see, we have a 3-swing (ABC) correction coming after an “initial decline” off an “prior high”. In other words in Elliott Wave terms this should be considered a Wave (2) correction. As I have mentioned before – what comes after a Wave (2) ? Exactly a strong Wave (3) type swing. This is why this is my favourite setup because very often we get a strong move of this setup.
As you can see, the only question was whether the Wave (2), TS1 setup should, be considered as it made a “double top” with the prior high. So is a double top still a correction ? In the early days of MTP I used to say No, that is why the RT add-ons need a correction to be “less than” the prior high. But I have amended this in V6.0 to say it can be “less than or equal to”, as I have found than many times a good move can come off a double top / bottom. This is what we have in this example.
Either way, this still fulfils the general concept behind the TS1 setup in that we have a important top that is followed by an initial, decline, that is then followed by a 3-swing, abc, correction. As I say, this is my favourite trade setup and one that I am always on the lookout for.
Thanks, Steve
PS, I will also take a good look at this setup in my customer Advanced trading webinar later today (MTP customers only)
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