Post 6 EWU Observations from a New Student

December 11, 2013

Hi Jody,

Last night I had the most amazing experience. I had just completed about an hour of detailed analysis trying to pick targets for the end of the S&P 500 Minute circle-iv of Minor 5.

It looked to me that we had completed waves Minuette (a) and (b) forming the first two legs of a Flat and I was computing the area of convergence for the end of (c) which would mark the end of circle-iv, a la Harmonics Module 1.

So, I had done all of this analysis and evaluated an alternative count which was that wave circle-iv had ended and that we are seeing (1) – (2) up. (Notice that both the Primary and Alternate had me pulling back in the short term, not much of an Alternate, which has always been my Achilles heel when using Elliott analysis)

Before I went to bed, I took one last look at the charts and there, staring me in the face, on the 15-minute chart was a BO-3 higher! All it needed was a close above the Filter on the next bar and it would be a buy. How long had I looked at that chart and never even seen that? I was so focused on my count being “right” that I never even looked. If you remember in a previous email, this kind of thing has happened to me before!

And then it dawned on me, like a light went on in my head. I have been looking at charts in a sequential fashion; where’s the Gold Bungee, where’s the Tunnel, where’s the Wave…etc. But, the first two things that I should be asking myself whenever I look at a chart are (1) what’s the Wavy Tunnel Setup that would take me up from here? (2) What’s the Wavy Tunnel Setup that would take me down from here? It’s like the subtle shift in focus used when looking at one of those 3-D pictures. And since I’ve really worked hard to know how to spot each setup, I can see them pretty readily if I will only be aware enough to look for them.

And since the 15-minute S&P was a BO-3 if we went up and a FG if we went down; and since my Primary count was that we were going down and would ultimately have a BO-1 to take us to wave circle-iv, my alternate should have been that we would go immediately higher in wave (3) of circle-v (or an extension of wave (1) of circle-v). Now, that’s a real Alternate, not a watered down version of my Primary.

So, by being able to spot the setups of the Wavy Tunnel trades, they more or less generate the feel of the wave count for you, since each setup is essentially equivalent to an Elliott wave.

And thanks for getting me set up in the Trading Room and able to get into the services. I’m very eager to start putting Semaphores on my charts.

It’s a crooked path; but, I’m getting there!

-dave

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