2012issue C0332-35
Fiery bull construction from sector thrust to wave count
A historical four-step build for a fiery-bull-trade: isolate a sector-led thrust, lock a monthly 1-2-3-reversal, count the stock’s weekly-rhythm, then treat the later abc-correction as a timed daily trigger that can be wrong.
- Construction starts with the strongest names in leading sectors, not with a lone daily pattern.
- A monthly 1-2-3-reversal has to be in place before the weekly pause is counted as an abc-correction.
- The weekly-rhythm turns that rest into a calendar window so a later 2b-bottom can be tested rather than guessed.
- The historical exit is counted as well: high-to-high swings plus a 61.8% Fibonacci-style target, not an unstructured sell.
What the fiery-bull-trade constructs
The fiery-bull-trade is a constructed long setup that starts from a large, sector-led advance, then waits for a higher-timeframe reversal and a characteristic pause before buying a later pullback.
A four-step construction is used: find the strongest movers in leading sectors, confirm a higher-timeframe reversal, map the stock’s distinctive pause-and-rise rhythm, then hunt a daily low-risk trigger.
Editorial aim: lock those layers in order so the later abc-correction is a condition that can fail, not a hunch about the next rise.
Start with a sector-led thrust
The first cut is not a candlestick on one name. It is the strongest movers in leading sectors.
The screening trigger is a stock that advanced more than 90% in about three months while its sector was leading. One historical case rose from 1.58 to 3.78, a 139% move in nearly 90 days.
That thrust is the raw material for the count. It is not yet the entry.
Lock the monthly reversal
The higher-timeframe filter is a monthly 1-2-3-reversal: a downward trendline break, a higher low, then a break above the previous high.
That is the 1-2-3-reversal as a three-stage trend-change construction: a trendline break, a failed attempt to continue the old extreme, then a break of the prior swing that confirms the new direction.
Until that monthly reversal is in place, the later weekly pause is not treated as a completed correction.
Count the weekly-rhythm
The wave-counting interval is a recurring weekly-rhythm of about a six-week pause, often toward a 15-week average, followed by a four-to-five-week rise.
That pause-then-advance cadence is the stock-specific counting interval for the next bullish swing. The map is of this name’s rhythm, not of a generic weekly template.
Turn the rest into an abc-correction
The abc-correction is treated as that six-week rest after an impulsive rise. It is the pause-and-retracement interval that must complete before the next advance is hypothesized.
A calendar alert is set four weeks after the first weekly red candle with a lower high so the later daily entry can be timed against the rest, rather than chased during the impulsive rise.
Use the daily 2b-bottom as the trigger
In the worked example, the daily strike is a 2b-bottom at 2.50 on June 10, 2011, with entry at 2.66 after the weekly-rhythm and the monthly reversal are already in place.
A 2b-bottom is constructed as a failed new low after a retracement: price probes below the prior low but does not follow through, marking a potential long.
Editorial note: without the higher-timeframe reversal and the counted rest, the same daily failure is only a local pattern. The construction treats it as a trigger only after those larger conditions exist.
Exit with a counted target
The constructed exit uses high-to-high counting and a 61.8% Fibonacci-style target rather than an unstructured sell. The same counting habit that framed the abc-correction is used to define where the hypothesis ends.
All readings on this track · 18 readings
- 1986Copper wave degree and channel objectives
- 1987Constructing a price-time Fibonacci window for the ABC correction
- 1989Building entry and exit rules from pivots, channels, and abc-corrections
- 1989Constructing ABC Fibonacci expansion objectives
- 1990Calendar windows for three-wave pullbacks
- 1990Labeling wave 1, B, or X after a five-wave C
- 1991Constructing an Elliott zigzag with ABC Fibonacci checkpoints
- 2002Constructing Elliott wave ABC and triangle pattern counts
- 2003A bear-market bounce as a second wave, an RSI nonconfirmation, and an ABC relabel
- 2004A pretrade risk lockbox at Elliott ABC ends
- 2005Three-check identification of an ABC pause in an uptrend
- 2005The 61.8 percent Fibonacci line as a zigzag kill-switch
- 2005Constructing volume-float channels for ABC corrections
- 2008When monthly wave counts split, freeze the ABC and Fibonacci brackets
- 2012Fiery bull construction from sector thrust to wave count
- 2013Critiquing rigid Elliott wave ratios after computerized trading
- 2018V-wave count construction from impulse and ABC corrections
- 2018Constructing short hypotheses from completed ABC corrections