Hello Theo,

The attached chart is taken from page 34 in the e-book and also referenced in the second video (approx' 40 mins in).
The last yellow wave up breaks above its previous wave high (potential resistance) and at that stage I would have drawn a horizontal line as a potential mirror flip support. Given however, that a yellow wave down to that level would have produced a wave that was not relative to the scale of the yellow waves; would that invalidate the level as a potential support level? 
My thinking is, if the wave lines were removed and we just looked at the chart as a candlestick chart, then we would apply the guideline that says 'resistance once broken may act as support'. However, your comments in the video and e-book suggest (along with your wavEFX charts) that your primary focus is on price waves and using relative size (scale) to combine and separate the waves. As such I think I can probably answer my own question.

Price has not extended the yellow wave far enough such that the retrace to the potential mirror-flip level has not created a wave that is relative to the other yellow waves; therefore, the potential mirror-flip is invalid. By the same token, the same level would not be considered as a potential split-double-tap as the potential turn up of the yellow wave by the three-point turn (3PT) would not produce a yellow wave of a similar yellow wave scale (refer the vertical black line marked 'a').

Do my explanations regarding the potential mirror-flip and split-double-tap make sense?

If price action had produced yellow waves as per the inset, would you still consider it a split-double-tap (Head & Shoulders) given the price consolidation identified in the green oval?

Would the demand/supply levels marked by the grey and brown ovals and lines, be a cause for concern when looking to trade the 3PT reversal? You do mention in the video, that the 3PT is fighting the price action of the same scale, as well as the confirmed yellow down wave. Would the supply/demand levels be more significant because of the bearish bias of both the green and yellow waves or would we only reference the supply/demand levels when looking at the trading time frame waves (yellow)?

Pepe.

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