60-Days (Technical Analysis Training)

Corrective wave: Technical Analysis Training

images-21.jpg

This is the 22th Day course in a series of 60-Days called “Technical Analysis Training

You will get daily one series of this Training after 8 o’clock night (Dinner Finished)

Follow MoneyMunch.com Technical Analysis Directory and Learn Basic Education of Technical Analysis on the Indian Stock Market (NSE/BSE)

.
Technical-Analysis-Training

..

Corrective Waves 

Effect of Corrective Waves 

Markets move against the trend of one greater amount only with a seeming conflict. Resistance from the greater trend appears to forbid a correction from establish a full impulsive format. The struggle between the two oppositely trending amount generally makes corrective waves less clearly identifiable than impulsive waves, which always flow with comparative ease in the direction of the one greater trend. As another result of the conflict between trends, corrective waves are quite a bit more varied than impulsive waves.

.

Corrective patterns fall into four main categories:

Zigzags (5-3-5; includes three variations: single, double, triple);
Flats (3-3-5; includes three variations: regular, expanded, running);
Triangles (3-3-3-3-3; four types: ascending, descending, contracting, expanding);
Double threes and triple threes (combined structures).

.

ZIGZAGS (5-3-5)

A single zigzag in a bull market is a simple three-wave declining pattern labeled A-B-C and subdividing 5-3-5. The top of wave B is noticeably lower than the start of wave A, as illustrated in Figures 1 and 2.

hardly zigzags will occur twice, or at most, three times in series, especially when the first zigzag falls short of a normal target. In these cases, each zigzag is separated by an intervening “three” (labeled Q), producing what is called a double zigzag (see Figure 3) or triple zigzag. The zigzags are labeled P and R (and S, if a triple)

Untitled

zigzag3 copy copy

FLATS (3-3-5)

A flat correction vary from a zigzag in that the subwave progression is 3-3-5, as shown in Figures 4 and 5. Since the first actionary wave, wave A, lacks sufficient downward force to unfold into a full five waves as it does in a zigzag, the B wave reaction seems to innerit this lack of countertrend burden and, not surprisingly, abolish near the start of wave A. Wave C, in turn, generally terminates just slightly beyond the end of wave A rather than somewhat beyond as in zigzags.

.

Flat corrections usually retrace less of preceding impulse waves than do zigzags. They participate in periods involving a strong greater trend and thus essentially always precede or follow extensions. The more strom the underlying trend, the briefer the flat tends to be. Within impulses, fourth waves frequently sport flats, while second waves barely do.

.

Three types of 3-3-5 corrections have been analyze by variation in their overall shape. In a regular flat correction, wave B terminates about at the level of the beginning of wave A, and wave C terminates a slight bit past the end of wave A, as we have shown in Figures 4 and 5. Far more common, however, is the variety called an expanded flat, which contains a price extreme beyond that of the preceding impulse wave. In expanded flats, wave B of the 3-3-5 pattern terminates beyond the starting level of wave A, and wave C ends more extensively beyond the ending level of wave A, as shown in Figures 6 and 7. In a rare variation on the 3-3-5 pattern, which we call a running flat, wave B terminates well beyond the beginning of wave A as in an expanded flat, but wave C fails to travel its full distance, falling short of the level at which wave A ended. There are hardly any examples of this type of correction in the record.

Untitled 1

Untitled 2

Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your Technical Analysis Training.

 

Technical Analysis Training (60 Days – Comprehensive Course)

Short-Term Chart Patterns (15 -Days)

Short-Term Chart Patterns: (7Days)

Gap Down Chart Pattern

Gap Up Chart Pattern

Gravestone Short-term Chart Pattern

Hammer Candle Stick Chart Pattern

Hanging Man Short-term Stock Chart Pattern

Inverted Hammer Stock Chart Pattern

Shooting Star Candle Stick Pattern

Bearish Short-Term Chart Patterns: (2Days)

Engulfing Line (Outside Bearish Reversal) Chart Pattern

Island Top Chart Pattern

Bullish Short-Term Chart Patterns: (6Days)

Engulfing Line (Bullish) Chart Pattern

Exhaustion Bar Chart Pattern (Bullish)

Inside Bar Chart Pattern

Island Bottom Chart Pattern

Key Reversal Bar (Bullish) Chart Pattern

Two Bar Reversal (Bullish) Chart Pattern

Indicators & Oscillators (Total – 11Days)

Bullish or Bearish Indicators: (3Days)

• Double Moving Average Crossover
• Price Crosses Moving Average
• Triple Moving Average Crossover

 

Bullish or Bearish Oscillators: (9Days)

 

• Bollinger Bands Oscillator
• Commodity Channel Index (CCI)
• Fast Stochastic Oscillator
• Know Sure Thing (KST) Oscillator
• Momentum Oscillator
• Moving Average Convergence/Divergence (MACD) Oscillator
• Relative Strength Index (RSI)
• Slow Stochastic Oscillator
• Williams %R Oscillator

Classic Chart Patterns (Total -29Days)

Bearish Classic Chart Patterns: (14Days)

 

• Continuation Diamond (Bearish) Chart Pattern
• Continuation Wedge (Bearish)
• Descending Continuation Triangle Chart Pattern
• Diamond Top Chart Pattern
• Double Top Chart Pattern
• Downside Break Chart Pattern – Rectangle
• Flag Bearish Chart Pattern
• Head and Shoulders Top Chart Pattern
• Megaphone Top Chart Pattern
• Pennant Bearish Chart Pattern
• Rounded Top Chart Pattern
• Symmetrical Continuation Triangle (Bearish)
• Top Triangle/Wedge Chart Pattern
• Triple Top Chart Pattern

Bullish Classic Chart Patterns: (15Days)

• Ascending Continuation Triangle Chart Pattern
• Bottom Triangle Or Wedge Chart Pattern
• Continuation Diamond (Bullish) Chart Pattern
• Continuation Wedge Chart Pattern (Bullish)
• Cup with Handle Bullish Chart Pattern
• Diamond Bottom Chart Pattern
• Double Bottom Chart Pattern
• Flag Bullish Chart Pattern
• Head and Shoulders Bottom Chart Pattern
• Megaphone Bottom Chart Pattern
• Pennant Bullish Chart Pattern
• Round Bottom Chart Pattern
• Symmetrical Continuation Triangle Bullish
• Triple Bottom Chart Pattern
• Upside Breakout Chart Pattern – Rectangle

Education and Extras (4Days)

• Motive (Impulse) Waves

• Corrective Waves
• Bullish Trend Reversals
• Bearish Trend Reversals
• Chart Pattern Statistics

This Completes the List of Courses.

.

Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.

Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?

Previous ArticleNext Article

5 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *