"All human activities have three distinctive features: pattern, time and ratio - all of which observe the Fibonacci Summation Series" (R.N. Elliott - "Nature's Law - the Secret of the Universe" - 1946)


Monday, December 10, 2012

SPX - Assumptions and possibilities

Let's start with three assumptions:
1 °) the main trend is up, until proven otherwise;
2 °) the move up from the bottom seems a complex corrective pattern that it's not yet over;
3 °) a complex corrective pattern has a number of variations so great that it is impossible to predict the right one.
Below just some of the likely patterns (there would be too many to list...)
In this situation of confusion and uncertainty, the best trading strategy is to wait and see which side is breaking.
Have a great trading day...with care!

ElwaveSurfer




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