First Wave Down – What to Watch For
What we’re looking for to confirm a turn is a motive wave down in 5 waves at small degree (which really means the first set of 5 waves down, which will be small, but should drop to the previous small 4th wave).
After that, we should get a second wave that will retrace up in 3 waves about 62%, or more. That’s the preferred EW entry point. So don’t feel you have to rush in. There’ll be a much better opportunity at the second wave level than at the top and the risk is substantially reduced.
For a market bottom, it’s the same pattern upside down.