This wave counting tip comes straight from our 3x per week Short Term Update:
“One of the most useful shortcuts we learned quickly when we were first studying the details of the Wave Principle is to simply count the number of waves in a move to determine if it is an impulse or a correction. Impulse waves always subdivide as 5 waves, or (+4) 9 waves, or (+4) 13 waves. Corrective waves subdivide as 3 waves, or (+4) 7 waves, or (+4) 11 waves, unless it is a sideways triangle. It’s a quick way to peruse many charts without having to spend time delving into the variants of the subwaves to determine which of the waves is the extended one.”
“The 90-minute range chart of the [S&P 500] shows how it is applied.”
Short Term Update gives you forecasts for U.S. stock indexes, as well as global indexes, bonds, precious metals, the U.S. dollar and the economy. Learn more.
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