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Tuesday, December 29, 2009

ZigZag Synergy

Back in early November when we were tracking what we thought was a Minute [ii] retrace back up after a late October and early November nasty drop, there occurred an 18-1 up volume ratio day that took the market back over 1060.  That night, I showed my primary count reverted to a likely triple intermediate zigzag for P2. The "kickoff" internals was too much to ignore. That recognition has paid off somewhat as it allowed us to be patient and let P2 play out.

So since then we have been tracking an "ABC" in blue for the final (Z) wave zigzag to play out.

This triple ZZ count "looks" correct. It has nice form and symmetry in its moves. It also works best with market internals in my opinion.

Just for fun, I threw a double ZZ count in the entire structure to date.  It doesn't look as good but still, as a stand-alone count, its workable.

And here is the simplistic (A)(B)(C) for P2.  I actually like the synergy on this count and how it aligns with the Triple zigzag.

So that is 3 ways to track the move up from March assuming its a P2 sharp rally.  I like the Triple ZZ count because its works the best with market internals (each ZZ had a big "kickoff" up volume move in its A wave and it works nice) and incorporates the most rules and guidelines.

The double ZZ middle chart doesn't work as well anymore and it looks a bit forced on the upper end. The single (A)(B)(C) last chart has a nice rhythm going for the (C) wave in an expanding shape, yet there are problems. And the (A) wave has internal problems. But all in all, there is certain synergy between all 3 charts somewhat. And that is very good for the overall count.

There can be no more than 3 Intermediate Zigzags.  We seek the top of C as that points to the very top.

Soon.  Very soon.
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