Wave Three Extending???

[silverxx12]

Is this a case of wave three extention , it does seem to be at the most equal to wave 1 .
If not can you explain why??

[MR]

Without having the benefit of analyzing the chart for myself, and just commenting intuitively when looking at your chart, I would have to say, yes, I think this could be a good candidate for a wave 3 somehow extending higher.

Thanks for the chart idea... I might 'toy around' with it today.

[silverxx12]

Hey Marcus ,

whatever 'toying around' you do with the chart i'd be grateful if you can post your ideas of what you think...

[MR]

For those of you wondering what "toying around" is about... the stock we are talking about, HAS, is Hasbro, a US toy company... Will see what develops... (oh, sorry, that would be EK)

... if i can, will post a HAS to build off what you are seeing too. Take care, marc

PS - as a disclaimer, my kids own MAT

[MR]

I wanted to add a few more ideas after finding time to look at this chart.

Compress the 15 minute data bars. Observe we are in a trading range since August and now we are testing the previous high area. If we were at or near some sort of a bottom of a range the fact Wave 3 was equal to Wave 1 would be more attractive. In this pattern it still could become nothing but some sort of an A-B-C, or a continuation of a trading range pattern.

Load up the daily and compare action. This stock has been in a nice uptrend for almost a year. Since June it has topped out and is in a small range trade pattern. (That is the trading range we are defining in the 15 minute chart.) It still is holding above the previous major 2001 high, a positive.

While we may try to anticipate Wave 3 extending higher, we also need to remember the W4, W1 Overlap Rule and apply it also to this example.

We need to define risk/reward potentials if we are thinking this is a Wave 3 that could extend. Even if it extends higher it is not going to do any good unless we can define a buy entry with some sort of a good R/R ratio over 1.6.

This example is a little challenging because the risk reward on the 15 minute is really not a clear idea.

Don't get me wrong, I actually find HAS attractive. I only wanted to expand on previous comments and add a little more understanding what else to watch, monitor for, consider before taking any trade based on observations of a Wave 3 potentially extending. Does this help? Take care, chart sample is attached to illustrate. -mr

[pj909]

I think this is/was a Type II sell.

A look at the weekly shows a very mature w3. Dropping down to the daily chart shows a w5 high on 8/20 at 19.37 which held on 9/17 (H=19.22). The 30 min chart is counting an impulsive sequence down which would support the idea of a w4 on the weekly.

I think support will be 17.26 then 16.15. Don't be fooled if prices bounce from 18.32 - that would be a very short term swing.