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Beyond Traditional Cycles

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FIGURE 5.10 Time Target for Complex Correction

If the EUR/GBP is making a corrective rally as the overlapping pattern suggests, the corrective high should be complete within the next few bars, if it is not already complete as of the last high on the chart. Consider the logic of the time factors. The 100% time retracement of the five-wave bear trend is just a few bars away. The 100% time retracement is typically the maximum time retracement for a complex correction. The 100% high-high cycle is just a couple of bars away. The last high on the chart is within one bar of the recent low-high counts (alternate time projection). All three time factors suggest the corrective rally is at or near completion. If this is the case, the EUR/GBP should soon begin a decline to a new low, not just a minor decline. The pattern and time factors don’t suggest merely a short-term high, but the final minor high of a complex correction that will be followed by a continuation of the bear trend to a new low. Is this valuable information you could use to make a specific trade strategy? You bet it is. Figure 5.11 shows what followed. The EUR/GBP tagged the 62% price retracement, made a momentum bearish reversal, and soon declined to a new low. The time factors didn’t point to the precise 15m bar of the high. They did clearly warn the trader that the

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(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

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