Principle C [PDF Download]

[immy]

Here is the Principle C Pdf to download

[Herbert]

Thanks Immy.

Am i right in saying one finds this early off purple in an extended w1 (albeit normally w3 extends) with 1st retrace in trend being sub 1-2 and following illustrated abc retrace with lower aims level as higher degree w1-w2 fractal, but as mentioned, break of lower 2nd aims level constitute wrong-count/reversal?

Where w4 is concerned for me complication is still an issue. I will have to digest.

Regards
Herbert

[autopro]

Am i right in saying one finds this early off purple in an extended w1 (albeit normally w3 extends) with 1st retrace in trend being sub 1-2 and following illustrated abc retrace with lower aims level as higher degree w1-w2 fractal, but as mentioned, break of lower 2nd aims level constitute wrong-count/reversal?
Herbert

Yep! (rofl) (rofl) (rofl) (rofl) (rofl)

[Herbert]

Yep! (rofl) (rofl) (rofl) (rofl) (rofl)

)
Open your journal so i can vandalize it...

[immy]

A Principle C Can appear at 3 spots.
1. At the start of a trend, out of a choppy marke. It confirms Wave 2. here it shows Wave C of Wave 2.
2. In the Middle of Wave 3: Here it confirms the 4th wave of Wave 3. This becomes the mid point for that wave, in most cases.
3. At the end of Wave 3: this confirms the C of Wave 4.

At Point 1 and 2 knowing that it is a PC is more useful than it is to know its a C while price has already shown a Wave 3 and now retracing back.

Please check the picture below.

Picture taken around London Open 7th of March 2012. Left EU Right EJ on M1.

07-03-2012 09-44-13.png

When is a PC not a PC?

In the picture below its a PC but... look at the next picture.

07-03-2012 10-41-18.png

...in the picture below it then broke below the AIMS Level which created the PC. So this no longer is a PC.

07-03-2012 10-59-13.png

and Now one can even say this upper aims level, shown in picture below is the PC of Wave 2 to the downside.

07-03-2012 10-59-23.png

[immy]

Thanks Immy.

Am i right in saying one finds this early off purple in an extended w1 (albeit normally w3 extends) with 1st retrace in trend being sub 1-2 and following illustrated abc retrace with lower aims level as higher degree w1-w2 fractal, but as mentioned, break of lower 2nd aims level constitute wrong-count/reversal?

Where w4 is concerned for me complication is still an issue. I will have to digest.

Regards
Herbert

I must have read this on several occassions several times, still I dont get it! :o3

Any way well said! B-)

[Herbert]

Very well illustrated, thanks Immy.

Regards
Herbert

[Bettina]

Hi Immy,

yesterday evening you mentioned in Skype, that you had another nice trade using Principle C. Must have been the one in the following picture. You took a large risk there for a longer amount of time - at least on the current profit.

My question - just to confirm - is about that risk, illustrated in the second picture with an example from your book :
Is it correct, that we have to stay with the initial risk until wave c in a wave 2 or 4 is confirmed ?
Or do you use the balance line or purple or any EMA200 in the meantime ?? Interesting thing !

Bettina

09-03-2012 PC.png

09-03-2012 PC2.png

[immy]

Hi Bettina!

The trade formation was taken on M5 and managed on M5, on m1 there was an exit however, on m5 it never came close to any of the lines.
If you'd like to stay through PC so that you can ride the whole 3rd wave, you'd focus on PC of Wave 3 only. So if there is a PC before there is a divergence (before the cross of zero line) you'd keep your disaster stop loss away from current aims level. AS pointed in the 2nd picture by you, so you'd use 2 AIMS level behind instread of 1 aims level behind. When PC is formed that becomes your Trailing aims level and then you trail 1 candle behind instread of 2 because PC has already occured and now you'd like to exit at the peak of Wave 5.

I hope this makes sense. and Many pips to you.. here is apicture

[immy]

A nice clear wave