Dave from Sydney's Journal [Awarded Title: the Box-Trader]

[Dave]

Thanks Darren, did the job!

[Dave]

Hi everyone, I haven't posted for a while but I enjoyed the EJ move this evening. I've also thrown in a picture at the end that shows an important distinction between the types of stepping pattern I often refer to. Kris mentioned it to me the other day and it's such a simple concept, but one definitely worth highlighting and remembering.
Cya

Screen Shot 2014-03-11 at 7.17.11 PM.png

Untitled.jpg

[Nikita]

Very nice add-on company!

If you have time (or anybody else) could you please comment on destinction between the type of stepping patterns?

[KrisL]

Hope Dave doesn't mind me jumping in here.

What he's referring to by the different stepping patterns is the "character" of price movement (in Elliot wave terms, the character of the wave). The difference is that one is clearly impulsive and the other is clearly corrective in nature. Some clues to the character of the wave:

Impulsive - gator wide open, price moving in steps that don't overlap each other, progress made in a certain direction
Corrective - gator looks sleepy, price moves in steps that overlap, there is an obvious lack of overall progress (that is, price moves in a sideways manner, or if it moves in one direction it does so without much conviction).

Hope that helps.

[Nikita]

Thank you, Kris.
It helped a lot. I m just wondering, how this onfo could help us?

[Dave]

Hi Nikita,

I suppose what I’m trying to highlight, and thanks to Kris for his explanation, is the visual difference between an impulsive wave and a corrective wave as displayed by the stepping pattern of the AIMS boxes.

Kris said it well, “progress made in a certain direction”, as shown by AIMS boxes that are stepping away from the zero line where the height of the box is greater than its width, or where the vertical movement of price is greater than the horizontal movement of time. That might sound a bit long winded, but it’s just saying that price is moving with impulsivity.

In contrast, an indication that we may be in a corrective wave is the shallower stepping pattern of the AIMS boxes, where we clearly see price drifting sideways rather than making progress in a certain direction.

These two wave characteristics can also be seen on the eWave, where we see a steep and sudden push away from the zero line (often developing into a wave 3/5) or a shallow and drawn out drift back towards the zero line (which may be wave 2/4).

The key point here is that we want to make entries into the next potential impulsive wave following a shallow AIMS box stepping pattern/shallow eWave retracement/corrective wave. We should therefore be more cautious about entries that, although away from the zero line, may be following a steeper AIMS box stepping pattern/steeper eWave retracement/more impulsive wave.

Stepping.JPG

[Darren]

Great explanation - thanks Dave!

[Nikita]

Bull`s eye, Dave!
Thank you very much for that detailed explanation. (wd)

[Dave]

An evening of false starts but a positive result nonetheless, cya next week, enjoy the weekend everyone.

Screen Shot 2014-03-13 at 7.32.42 PM.png

Screen Shot 2014-03-13 at 6.50.10 PM.png

Screen Shot 2014-03-13 at 7.33.13 PM.png

[Silas]

Thank you very much Dave for this great post :-bd