Question of the Week: 12/26/2005
What are the behavior traits that differentiate :F3`s from :5`s?
Before the release of Version 2.0 of Mastering Elliott Wave, Version 1.0 (called Elliott Waves in Motion) contained a far simpler version of Chapter 3 that was only 10 pages (the new Chapter 3 is 69 pages!). The older Chapter 3 stuck to the basics regarding the determination of whether a monowave is corrective or impulsive based on the behavior of waves that surrounded it. What many people don`t realize is Chapter 3 is a exercise in behavioral logic (i.e., the logical interaction of waves and how the behavior surrounding each monowave determines its internal, hidden nature). Once you understand the logic behind the process, the specific steps in Chapter 3 become unnecessary. Chapter 3 is not intended to be a constant requirement for proper wave analysis, but simply a crutch to help those early in their learning curve until the logical concepts of NEoWave become ingrained. Once ingrained, most of Chapter 3 can be ignored.
Before I can answer the above question, I must point out that :F3`s are a very specific type of correction that usually occur as the first leg of a more complex correction; consequently, I cannot compare the general behavior of :5`s with the specific, and typically lower degree behavior of :F3`s. On the other hand, I can address the differences between :3`s and :5`s of the same degree. In general, :3`s retrace no more (usually less) than 61.8% of a prior monowave (advancing or declining), will consume the same amount of time or more (usually more) as the prior monowave and will exhibit the same complexity (or greater) than the prior monowave.
On the other side of the coin, the behavior of :5`s is the opposite of :3`s; they will completely retrace the last monowave faster than it took to form, overall they will take less time than :3`s that follow their development and they will exhibit more violent behavior (i.e., they will cover more price in less time) than preceding and proceeding :3`s.
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