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Question Of The Week - Library Of Past Questions |
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| 9/27/2006 |
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| Question: |
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Is a Diametric formation Corrective or Impulsive? Also, in a rising market, does it indicate the trend will continue or does it indicate the rally is over?
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| Answer:
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This question was sent in by Rajan Khosla (location unknown). Since my recent customer survey indicated many were confused about my NEoWave formation discoveries (Diametrics and Symmetricals, which are not discussed in Mastering Elliott Wave), I thought additional focus on this subject was necessary.
Let's first address part one of your question. All patterns. other than 5 segment Trending or Terminal impulsions, are corrective in nature (i.e., they compact to a :3). As a result, Diametrics are definitely corrective formations.
Now on to question two; a Diametric cannot occur as waves-1, 3 or 5 in a Trending impulsion, nor in wave-c of a Flat or Zigzag, but they can occur virtually anywhere else. As a result, no blanket statement can be made about a Diametrics future implications. It depends on what wave it concludes of the next larger degree and the implications of that conclusion within the context of the larger pattern. For example, if the Diametric concluded wave-e of a Contracting Triangle, the implications would be very different than if it concluded wave-d of the same Contracting Triangle.
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