Friday, April 30, 2010

How will we determine the magnitude of the next correction?

The calculated trendlines for the small pattern in the upper right (labeled with small blue numbers) will be followed if the correction is relatively short and shallow. Should the correction turn severe, after a little while of following the trendlines generated from the small blue numbers, we will see the price action jump towards deeper trendlines generated from some of the longer term segments, here numbered in red....that's how we will know what's going on at a deeper level...

(Click to enlarge)

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