@chessnut can you please explain how the ABC conbination in your chart is able to be a flat and have a largish volume event happen for the B.
Isn't the point of a flat that A only has three waves due to lack of follow through in the market and that B is a correction of nearly 100% of A?
I'm not trying to troll at all, just trying to learn and understand EW.
Hey,
A triangle is an example of 5 wave of 3, they occur in wave B or iv position, they are not considered impulsive, it is just a phenomena that genuine triangles are observed to have 5 waves of 3. The triangle in this count is not a critical part of the count, there are other ways to get around that, but the triangle is good form.
Wave B may retrace more than wave A, the definition of a running flat is where wave B goes a step further. They are not common, only in markets of particularly strong rate of change, wave iii is one example of this kind of situation.
Yeah, it would make a big wave B if thats what it is, I cant say much for the volume.
We have little choice of alternate counts in this situation because the larger time frames are just excellent form. We are assuming that we are in an impulse and that it s not complete.