Thursday, September 24, 2009

Pre-empting the market too early?

I don't really understand why people attempt to pre-empt the market with Elliott waves when the waves are not near completion. Why jump so fast to short?

1) Corrective waves could be complex. This is expected to be a corrective wave at the primary level right? It could well be an A-B-C-X-A-B-C or a A-B-C-D-E triangle...

2) Impulse waves of C could have extensions too.

3) Although Elliott waves of different indexes do tend to move in tandem, there's no rule that state that they must do so.

I read somewhere, the cure to negative divergences could be even higher prices... I thought trading is about buy high sell higer, or sell lower buy lower... Hmmm....

Well, I'm still new and noob at trading. Am I missing something out?

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