Question of the Week: 2/27/2006
In a Double Three Running Correction, how large can wave-X get?
This question was posed by Mushtaq Khair, a client in Maharashtra, India (there seems to be a great deal of interest in NEoWave in India). The existence of a Double Three Running Correction is discussed for the first time in Mastering Elliott Wave (MEW), so should be considered part of NEoWave theory. The pattern is covered in detail on pages 8-11 to 8-15. So, how large can wave-X get in such a situation?
First, let`s go over the time limits of X-waves in any pattern. Applying the NEoWave rule of Similarity and Balance on pages 4-3 through 4-7 of MEW (and considering that wave-X is the same degree as each individual A, B or C of the preceding pattern), an X-wave should NEVER take more time than the entire A-B-C correction before it. If it does, that would indicate wave-X is of a larger degree.
If your X-wave adheres to the above NEoWave Time Limit rule, then the next test would be to make sure wave-X is between 138.2% and 261.8% of the distance of the longest wave of the prior A-B-C. If less than 138.2%, a Triangle, NEoWave Diametric or NEoWave Symmetrical pattern is probably forming. If more than 261.8%, wave-X is probably the start of a new trend or wave formation, not part of an ongoing Double Three Running Correction.
Click here to view NEoWave's Question Of The Week archive