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?
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.
At specific times each week, Glenn Neely is available to answer questions, provide guidance, and offer individualized advice. This is an opportunity to speak directly with Mr. Neely to address your unique situation, advance your understanding of markets, and hone your trading and forecasting skills.
Cost is $20/minute, with a 10-minute minimum ($200 minimum charge). Your credit card will be charged after the call.
To schedule a consultation, please click on the "Request a Consultation" button below and fill out the Contact form. Our Sales Manager, Magelan Ferreira, will respond to your request to arrange a consult with Mr. Neely.