Updated

SPX''s Elliott wave count, if you are bullish ABC closing in.

101 ABC. A=5 Waves. B =3 Waves. C= 5 ending diagonal.
This whole wave is closing in for a completion
regardless of the different inner counting of it.

Note

If you are bullish this is a satisfied corrective count " counter trend" , we should go up big time if you are bullish.

Note

Diagonal Rules:

LD = Leading Diagonal, ED = Ending Diagonal

A Diagonal is a common 5 Wave Impulsive pattern labeled 1-2-3-4-5 that moves with the larger trend. Diagonals move within two channel lines drawn from Waves 1 to 3, and from Waves 2 to 4. A Diagonal must be contracting. There exist two types of Diagonals; Leading and Ending. They have a different internal structure and are seen in different positions within the larger degree pattern. Ending Diagonals are much more common than Leading Diagonals.
Wave 1 of a LD must be an Impulse or a LD.
Wave 1 of an ED must be a Zigzag family pattern.
Wave 2 may be any corrective pattern except a Triangle.
Wave 2 must be less than Wave 1 by price.
Wave 3 of a LD must be an Impulse.
Wave 3 of an ED must be a Zigzag family pattern.
Wave 3 must be greater than Wave 2 by price.
Wave 4 may be any corrective pattern.
Waves 2 and 4 must either overlap or be within 10% of length Wave 3 of doing so. All internal data points are considered.
The time taken by Wave 4 must be between 10% and 10 times the time taken by Wave 2.
Wave 5 of an ED must be a Zigzag family pattern.
Wave 5 of a LD must be an Impulse or ED.
If Wave 1 is a LD then Wave 5 cannot be an ED.
Wave 3 must not be shorter than both Waves 1 and 5.
Wave 5 must be at least 80% of Wave 4 by price.
Wave 5 is never the longest when compared with Wave 1 and Wave 3.
Wave 5 is always less than Wave 3 by price.
The intersection of the channel lines must be beyond the end of the pattern.
Diagonals must move within the two channel lines or be within 10% of gross movement.
Channel lines must converge, slope in the same direction and neither be horizontal.
The maximum number of pattern lengths into the future that the channel lines intersect is 4.
The minimum time for Wave 5 is 10% of Wave 4. The maximum time for Wave 5 is 5 times Wave 3.

Diagonal Guidelines:
Wave 1 of a LD is usually an Impulse, but in rare cases may be a LD.
Wave 2 is usually ZigZag family pattern.
Generally Wave 2 is greater than 35% of Wave 1's gross price movement.
Wave 4 is commonly a Zigzag.
It is rare that at least either Waves 2 or 4 of an ED is not a Zigzag family pattern.
Generally Wave 4 is greater than 35% of Wave 3's gross price movement.
The end points of Waves 1 and 4 generally overlap.
Expect the time taken by Wave 4 to be between 20% and 5 times Wave 2.
Wave 5 is usually greater than Wave 4 by price.
It is typical for Wave 5 of a LD to end before reaching the channel line.
It is typical for Wave 5 of an ED to exceed the channel line.

Note

Another source of info for Elliott:

All diagonals consist of 5 waves
Diagonals can be ‘leading’ or ‘ending’ diagonals, depending on whether they form at the start or end of a trend. Diagonals therefore can only form in the positions of wave 1 (leading) or 5 (ending) of an impulse, or the positions of wave A (leading) or C (ending) of a zigzag.
Within an ending diagonal, all 5 waves must be zigzags (simple-, double-, and triple-zigzags are all valid)
Within a leading diagonal, at least waves 2 and 4 must be zigzags (simple-, double-, and triple-zigzags are all valid). Waves 1, 3 and 5 can be impulses or zigzags. (If 1, 3, and 5 are impulses, be aware that it could easily be a 1-2, 1-2, 1-2 sequence instead of a diagonal)
Wave 2 must not retrace more than 100% of wave 1
Wave 4 must overlap with wave 1(please note that opinions differ over this rule. There are some Elliott Wave researchers who believe that ending and leading diagonals can be valid without wave 4 needing to move into territory of wave 1, although they still consider it unusual)
Wave 4 never moves beyond the end of wave 2
Leading and expanding diagonals must not have a truncated 5th wave.
Contracting diagonals always have a shorter wave 3 than wave 1 (in terms of percentage gain/loss)
Contracting diagonals always have a shorter wave 5 than wave 3 (in terms of percentage gain/loss)
Contracting diagonals always have a shorter wave 4 than wave 2 (in terms of percentage gain/loss)
Expanding diagonals always have a longer wave 3 than wave 1 (in terms of percentage gain/loss)
Expanding diagonals always have a longer wave 5 than wave 3 (in terms of percentage gain/loss)
Expanding diagonals always have a longer wave 4 than wave 2 (in terms of percentage gain/loss)

Guidelines:

Contracting diagonals form within two converging trend lines (contracting wedge)
Contracting diagonals can overshoot its trend line during wave 5 (called throw-over) and still be valid as long as wave 5 remains smaller than wave 3
Contracting ending diagonals can also undershoot its trend line during wave 5 (truncation).
Contracting ending diagonals should always show a corresponding decrease in momentum as they progress towards their culmination. Many small candles that take a lot of time to gain further ground is a good sign that an ending diagonal is indeed occurring. Conversely, strong big candles within a potential diagonal formation should be a warning sign that you are probably witnessing a 1-2, 1-2, 1-2 extension of the trend, and therefore not an ending diagonal.
Expanding diagonals form within two diverging trend lines (expanding wedge). They are more rare than contracting diagonals
Wave 2 and 4 of any diagonal very often retrace their wave 1 and 3 much deeper when compared to wave 2 and 4 of impulses
The internal zigzags of any diagonal can sometimes subdivide into more complex double or triple zigzags
Any diagonal can begin to be confirmed with higher certainty once wave 4 is close to being complete
Diagonals are more rare in general (although they do occur quite frequently within sub-waves of very small wave degrees that are visible on timescales of M15 and lower)
If wave 1 is a leading diagonal, wave 3 is usually extended.
A place to watch out for potential expanding leading diagonals is at the start of stock market declines (due to the opposing forces that are in play during this transitional period). Diagonals occur because of transitory forces of trend changes act against each other
Ending diagonals are followed by a strong reversal most of the time

Note

Breaking 3901.57 is your first step toward a bullish case getting stronger.

samitrading

I do more in depth studies of stocks on my twitter account. Hope you would enjoy it there as you are enjoying it here.

****** Past performance is no guarantee of future results***

twitter.com/samitrading1

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

samitrading

Also on: