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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.
Entries in this reading3 entries

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.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
15 of 18 in the ABC correction track
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All readings on this track · 18 readings
  1. 1986Copper wave degree and channel objectives
  2. 1987Constructing a price-time Fibonacci window for the ABC correction
  3. 1989Building entry and exit rules from pivots, channels, and abc-corrections
  4. 1989Constructing ABC Fibonacci expansion objectives
  5. 1990Calendar windows for three-wave pullbacks
  6. 1990Labeling wave 1, B, or X after a five-wave C
  7. 1991Constructing an Elliott zigzag with ABC Fibonacci checkpoints
  8. 2002Constructing Elliott wave ABC and triangle pattern counts
  9. 2003A bear-market bounce as a second wave, an RSI nonconfirmation, and an ABC relabel
  10. 2004A pretrade risk lockbox at Elliott ABC ends
  11. 2005Three-check identification of an ABC pause in an uptrend
  12. 2005The 61.8 percent Fibonacci line as a zigzag kill-switch
  13. 2005Constructing volume-float channels for ABC corrections
  14. 2008When monthly wave counts split, freeze the ABC and Fibonacci brackets
  15. 2012Fiery bull construction from sector thrust to wave count
  16. 2013Critiquing rigid Elliott wave ratios after computerized trading
  17. 2018V-wave count construction from impulse and ABC corrections
  18. 2018Constructing short hypotheses from completed ABC corrections
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