This will spark some controversy but I do hope it helps...

What you're looking at is an attempt to count the waves of the PSEi using the Elliot Wave Principle.
The breakout from the inverted head and shoulders is the W1 beginning at 1,154.67 which ended at the 2,172.76 level The W2 which is a corrective wave, is the consolidation which started at the peak of the first wave that ended at the 2,044.58. The confirmation from the second wave being it never leveled the peak of the W1.

The W3 being the longest started at the end of wave 2 then ended at 3,399.67, it is amazing that the computation for the third wave is the length of the first wave multiplied by the fibonacci 1.3822. It peaked at 3,399.67 almost touching the target by 5%.

A rule on the EW Principle is that the corrective waves (W4 and W2) must alternate in either price retracement or length of correction. We can see here that W2 was a consolidation, now W4 is a solid drop!

The chart is showing that we are now on the 5th and final Impulse Wave. Using the principle it is known that the length of W1 = the length of W5 we now can conclude that the target for W5 is 3,983.85, but there is HOPE! The W5 may also be an extension, it can be the longest wave, longer than 3W! Target for the W5 extension is 5,884.30!!

Yawsa!

Hi mickymac, i'm just a newbie here but as i read the Ralph Nelson Elliott wave principle, IMHO lang po WAVE THREE IS THE LONGEST AND MOST DYNAMIC WAVE OF THE FIVE WAVE ADVANCE. may i know where do you get or what book do you read that WAVE 5 can be the longest wave, longer than 3W?

QUOTE:
Hi mickymac, i'm just a newbie here but as i read the Ralph Nelson Elliott wave principle, IMHO lang po WAVE THREE IS THE LONGEST AND MOST DYNAMIC WAVE OF THE FIVE WAVE ADVANCE. may i know where do you get or what book do you read that WAVE 5 can be the longest wave, longer than 3W?

Learned it from the advance class boss...

I'm only saying that there is a possibility that the W5 can become a Wave 5 EXTENSION given that there are still participants who missed W1 and W3.

If we we're to apply the DOW Theory, W5 is longer than W3 is when W1 and W3 is the accumulation phase, thus making W5 the participation phase.

But if you look at the longer cycle, we're still on W3, reason being that we just recently broke the all time high.

Many thanks Mickymac :wink:

I don't understand pa elliot wave. galing sir mikey! ... but is PSEi correcting, big?
http://www.thechroniclesofthestocktrader.com/chronicles.php?c=4&s=5

If it's correcting big time, then that should be wave 4.