Learn Forex Trading Online with a Forex Pro

— Forum Scope —

— Match —

— Forum Options —

Minimum search word length is 3 characters - maximum search word length is 84 characters

Login form protected by Login LockDown.

Lost password?
Topic Rating: 0 Topic Rating: 0 Topic Rating: 0 Topic Rating: 0 Topic Rating: 0 Topic Rating: 0 (0 votes) 
Wave on wave.
Sharing the same swing high and low.
Pepe le Pip
Free Members

VIP Members
Forum Posts: 58
CubePoints $212
Member Since:
January 24, 2014
sp_UserOfflineSmall Offline
February 11, 2014 - 22:48
sp_Permalink sp_Print

Hello Theo,

I have written a few guidelines on identifying and drawing waves of the same scale on the one chart, so as to have a repeatable procedure to follow. One of the guidelines is, 'a larger scale wave cannot share a smaller scale wave's swing high and swing low'.
The guideline has been working well until just recently. I have come across a few examples where I have found it difficult to seamlessly combine waves of the same scale. One such example I have sketched out in the attached image.

In the image, the wave 'x' to 'y' is not large enough to be a yellow wave. To draw the yellow wave from '1' to '2' would make it of the same magnitude as the next higher scale wave. How would you resolve the issue? Would you draw it as in inset 'A'; inset 'B' or draw the yellow wave such that it would be the same magnitude as the larger scale wave?

Actually, I have noticed on some of your waveEFX charts that a brown wave often shares the same swing high to swing low as a black wave; so at the end of the day, does it matter?

I am leaning toward thinking that as long as the majority of the waves of a defined scale are relative in terms of their magnitude, the odd wave that doesn't fit, should not be cause for concern. My solution is to avoid replicating the larger scale wave (purple wave) and go with either one of the inset (A or B) work-around as the smaller yellow wave would only be covering the trigger scale waves. Is that an appropriate compromise?


** Register Here for Free Membership to see this image/link **

Without you (price action), I am not worth a [s]cent.

Theo Patsios
Forum Posts: 669
CubePoints $8001983
Member Since:
February 26, 2011
sp_UserOfflineSmall Offline
February 12, 2014 - 00:05
sp_Permalink sp_Print

Two scales of wave I am watching do sometimes synchronize and there is nothing you can do about that. Never forget how organic and how mechanical the market can be and just try and adapt.

If however a wave does not quite look relative, looks too small, but a series of smaller scale waves have occurred within it like your picture then I do consider it countable. So X-Y would not have been a yellow wave if price went directly from X-Y. Price did however get from X-Y with a series of price movements traceable on the smaller scale making the move from X-Y 'bigger' if you see what I am saying.

I think the answers to the rest of your text has now already been answered above.


Forum Timezone: America/Los_Angeles

Most Users Ever Online: 45

Currently Online:
3 Guest(s)

Currently Browsing this Page:
1 Guest(s)

Members Birthdays
Today: None
Upcoming: eddykaw

Top Posters:

koeart: 545

WeeMee: 354

fxstuntelaar: 185

Generaal_Goudvis: 141

juakali: 82

ChrisW: 81

henkknot: 70

Pepe le Pip: 58

Snejanka: 45

Gj8668: 38

Newest Members:











Forum Stats:

Groups: 5

Forums: 22

Topics: 224

Posts: 2415


Member Stats:

Guest Posters: 3

Members: 2250

Moderators: 5

Admins: 1

Administrators: Theo Patsios

Moderators: cesande, glangstaff@shaw.ca, Rob S, theopatsios, sitegroundam

Back to Top