https://s27.postimg.org/cus4wgahv/TSUNAMI.pngTsunami season is approaching again guys. With release announcement so close, we are almost half way into the third wave.
If you are unfamiliar with Elliot wave principle:
Wave three is usually the
largest and most powerful wave in a trend (although some research suggests that in commodity markets, wave five is the largest). The news is now positive and fundamental analysts start to raise earnings estimates. Prices rise quickly, corrections are
short-lived and shallow. Anyone looking to "get in on a pullback" will
likely miss the boat. As wave three starts, the news is probably still bearish, and most market players remain negative; but by wave three's midpoint, "the crowd" will often join the new bullish trend. Wave three often extends wave one by a ratio of 1.618:1.
