Topic: Analysis of previous bubble corrections and impending crash - page 3. (Read 4456 times)

I have analyzed the bubbles of previous chart and have observed that there were always several corrections to the LONG daily ema (blue line on clarkmoody) which would facilitate capitulation, keep the rally strong and make the new price permanent. When the long daily ema corrections stop, the rally enters into a bubbling mode. The final steps which occur during this stage are:

1. The last correction to the long daily ema.
2. A correction to the short daily ema.
3. A correction above the daily ema.
4. A huge spike followed by the crash



As you can see just like in march/april, we have stopped having corrections to the daily ema, have had a correction to the short daily ema, and have had a correction above the daily emas. At this point we enter into the bubbling mania phase, see a huge spike to ($700?) and then a crash. Maybe this part of my analysis is wrong, but in April the crash ended at the point of the last correction to the long daily ema, which was $50. Ours is around $200. I know $200 sounds ridiculous but that would be the result of us not having any serious corrections earlier and all that pent up dumping needing to occur. We would of course bounce off that level very quickly.

EDIT: I do believe a correction to $200 is unlikely and that $300 is more likely.