SUMMARY
It's been a while since I did a NEO update. The below chart shows the labels of an Elliott Wave complex combination correction. The video takes you through a very detailed process on how such corrections are identified and labeled. From the left of the chart, white circled waves 1,2,3,4,5 completed a classic impulse motive and since Elliott Waves states that every five waves are followed by a three wave retrace, the red a,b,c is labled to show. The ideal buy entry for a long position is at the terminal end of an a,b,c correction and sure enough, the trend reversed as shown by the first set of blue circled waves 1,2,3,4,5. These five waves too must undergo a three wave retracement.
Except in this case, the reactionary waves are not simple a,b,c; but rather a very complex looking pattern. The W,X,Y (3,3,3) correction is quite common and a good Elliotician must learn how to recognize and label these proficiently. The first set of circled red w,x,y are subwaves to a larger degree of trend red W; the circled purple w,x,y are the subwaves to a larger degree of trend red wave X; the circled yellow w,x,y are the subwaves of a larger degree of trend red wave Y. Each of the w,x,y waves have three subwaves themselves. I've also drawn out the boundaries of a symmetrical triangle pattern and this is labeled with a,b,c,d,e and each has three subwaves. As the e wave is not yet complete, expect one more small dip. The W,X,Y, abcde is called a complex combination correction.
Chart Pattern inclusion is very helpful as it supports Elliott Waves from a confirmatory side. The two parallel white lines outline a downard pointing channel. This pattern is called bullish flag. So, I've placed a price pathway for the first set of impulse waves that would take NEO to $60.47 for the midterm.
Now review the white waves 1, 2 and 3. Note how these are of higher degree of trends and so that impulse, correction and projected impulse waves are subwaves to them. The $60.47 is a mideterm target because it's where white wave 3 could hit and that leaves white waves 4 and 5 which could take prices well into triple digits.....BOOYAH!
As always, I wish you MASSIVE profits! (The video takes you through all the details on how count this complex combination Elliott Wave correction).
Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial
Laddering and Buy/Sell Setups.
Tutorial on the use of Fibonacci & Elliott Waves
These Technical Analysis Books: Elliott Wave Priniciple & Technical Analysis of Stock Trends are highly recommended
--
--
If this blog post has entertained or helped you to profit, please follow, upvote, resteem and/or consider buying me a beer:
BTS Wallet - d2e60e9856c36f34
BTC Wallet - 15ugC4U4k3qsxEXT5YF7ukz3pjtnw2im8B
ETH Wallet - 0x1Ab87962dD59BBfFe33819772C950F0B38554030
LTC Wallet - LefeWrQXumis3MzrsvxHWzpNBAAFDQbB66
Legal Mumbo Jumbo: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.**