FTSE 100 February

[Finirama]

Looking at the day chart, seems we are in a double correction. Also got a 3 peak negative divergence on RSI

Jan marked a completion of a smaller flat a-b-c construction for wave A.

This being the case, EW says expect a zig-zag formation for wave B linked by any a-b-c. The linking a-b-c forming the double bottom and the zig-zag took us upto the peak of 4,524 (i'm using close prices)

So seems we are already in the start of wave C???

Target for large correction wave C.....

wave A - length of C = wave A x 1.618 = (4,524 - 4,378) x 1.618 = 146 x 1.618 = 237

C = 4,524 -231 = 4,293

This would take us the trendline linking the trough of end of June and Sep.

 

[Finirama]

Another interpretation....


From the candlesticks, we might see another last attempt rally by the bulls to form a new high next week b4 the correction actually takes place...being helped by the expected strong reporting next week (HSBC,Persimmon etc).

It would also repeat the candlestick formations (circled) and link in with timeframes b4 last years' major corrections and also to the expanding top formation i posted last week.

Any thoughts??

Also, apologies if my EW analysis is behind other postings (still trying to get to grips with it!!)

 

[Hooya]

Morning. Trust everyone had a nice weekend. Like your chart Bonsai.

Spent a lot of time this w'end looking at the Murrey Math Grid. Like the theory of the time and reversal lines etc and most of the theory as its based on very simple Gann theory. However I am not too convinced about the method of calculating the height of the square. Alot of rounding down of numbers which although its only a Summary I was reading(so no explanation), I can't see how that really fits with theory of 1/4ers 1/8ths. Feels a bit like definite accuracy for the time values but price can be estimated. Not sure thats good enough for me. I did use the method of calculating the height of the square but they method means that it takes a large price swing for the square to change.i,e It has the same base as Friday...not sure if I like that either. (although the base is at 4492 for today:-0). Anyway plenty to think about.

 

[Hooya]

edit: wrong thread oops