non-rtb 4th wave with a deep retrace or 1-2 of larger degree?

[finster869]

Tom- Question for you. I know that a 4th wave in a non RTB can also enter wave 1 price territory. However, do you generally try to adhere to the old Elliott Wave guideline that wave 4 should not enter wave 1 price territory, if possible, when dealing with non-rtb 4ths?

For instance, traditional elliott wave rules would likely count the "flash crash" as the end of a large 1st wave. When you look at the chart from a new elliott wave rule perspective, you can probably count it as a 3rd wave of a smaller degree (iii) as opposed to (1), the big retrace as a non-rtb 4th that entered wave 1st price territory on the dow but not the s&p[ wave (iv) as opposed to wave (2)], and us currenly in wave v (whereas traditional elliottwave has as further in the process wave (3) of one degree higher).

How do you typically handle this?

[TS Hennessy]

If one explains away all the real motions which waveforms may take
by using the illusive extensions then one may pretend that 4th waves
do not enter wave 1 price area.

That simply is not the case however. This is true of RTB and Non-RTB
4th waves but they do not always enter wave 1 area.

[finster869]

(05-26-2010 03:09 AM)TS Hennessy Wrote:  If one explains away all the real motions which waveforms may take
by using the illusive extensions then one may pretend that 4th waves
do not enter wave 1 price area.

That simply is not the case however. This is true of RTB and Non-RTB
4th waves but they do not always enter wave 1 area.

So, if I understand the response, you would go with the 1-2-3-4, rather than the 1-2 of a higher degree traditional elliott wave labeling from the top on the current S & P chart?

[TS Hennessy]

I was not indicating a particular approach but a general
answer to the rules of the wave action.

To clarify, I am simply stating that 4th waves of either
type "may" enter wave 1 territory.