immy wrote:"Most traders complicate things incredibly. Because their minds probably can't handle the truth
yet that the markets basically feed where the orders are."
The TZ0. You might have noticed some of my pictures have TZ0 TZ1 and TZ2. After some gut feeling, "feeling for the market" and research I have made a conclusion. Its certainly not a Quantum constant but it may increase odds in our favour.
Wave 4 = when it retraces between 38% to 50%. You may even consider it wave 4 if it retraces upto 62%. But in most cases a retrace upto 62% is often a wave 2 of a higher time frame if not part of bigger wave 4. I hope it makes sense, if not just ignore this bit for now.
So, if a wave on eWave is shown as wave 4, and the chart also agrees that this could be a wave 4 after a strong wave 3 but it does not retraces to at least 38% if not 50% it is more than often the case that wave 5 will touch or stop between TZ0 and TZ1. TZ1 ofcourse we all know is Fib Expansion 62%, that means if wave 3 was lets suppose 100 pips, there are higher chances that wave 5, if there is one, would stretch between 62pips to 100 pips and not more .Of course again as we all know if it did strech more than 100 pips then this new wave 5 may be called rather a new wave 3. But if this last bit does not make sense to you for now, just leave it. The important bit is this.
Under normal circumstances when Wave 4 touches areas at least between 38% to 50% wave 5 should usually end between Fib Exp 62% that is TZ1 and Fib Exp 100% that is TZ2. BUT if wave 4 falls short of 38% retrace then chances are that wave 5 may be small as well stopping in the area near TZ0. Now the question is What is TZ0. Well its simply 38% expansion of Wave 3. So if wave 3 was 100 pips without a good 38 to 62 pips pullback (putting it simple numbers) chances are higher that wave 5 may extend only to zone of 38 to 62 pips or rather 38% to 62% of wave 3.
(*) \:D/ (hug)