Timing Solutions for Swing Traders: A Novel Approach to Successful Trading Using Technical Analysis and Financial Astrology

WAVE 4

Wave 4 will often become the first support level of the corrective A-B-C retracement following the completion of a five-wave structure. Wave 4 should not retrace the entire Wave 3. Wave 4 does not retrace past the end of Wave 1 or enter the territory of Wave 2. Frequently, the end of Wave 4 is accompanied by extreme readings in the momentum oscillator. The momentum oscillator will normally drop by more than 90 percent from its highest bar to below its zero line. Wave 4 normally retraces about 38.2 to 61.8 percent of Wave 3. Triangle patterns are often found in Wave 4. According to the Rule of Alternation, the pattern formation of Wave 4 will alternate with that of Wave 2 in time and price.