ABC completion, wave-two windows, and Gann ratios

A rising market against a slide into 2012

A reader contrasted an expected multi-year slide in valuations into 2012 with a market that appeared to be rising. The same letter asked whether a holding plan into 2016 fit that slide.

After the ABC is treated as complete

Once the prior ABC correction was treated as complete, the next working map was a five-wave advance. Price was then labeled as still inside the first upward wave.

Editorial reading: that completed three-swing structure is only the starting gate for a new impulsive count. The five-wave advance is hypothesized after the ABC is treated as finished, not before.

The wave-two test and its start window

The first pullback after that opening impulse is the wave-two test. It was allowed to be a simple three-swing correction or a more complex linked form, and it was described as able to retrace as much as 72 percent of the first-wave rise.

Chart structure was used to place the expected start of that second-wave pullback in a window from March 2010 through July 2010.

The same second-wave episode was also sketched as possibly shallow or nearly flat. That preference was marked as unconfirmed.

A year-wide band around the third wave

The second-wave low and the start of the stronger third-wave advance were placed around 2012. An explicit year-scale error band could land as early as December 2011 or as late as January 2013.

Editorial reading: that calendar error band is a timing allowance of about one year around the named target, so a miss of several months does not automatically void the count.

A prior long-cycle call for a major ABC-style correction around 1999 was later aligned with a start in March 2000. That episode was cited as an example of the same year-wide timing slack.

Gann ratios as a second toolkit

Correspondence requested more instructional coverage of Gann theory, Gann chart construction, and Gann ratios and proportions as a distinct toolkit alongside the wave count.