Idealized “B” Wave Bull Market Review

 

b-wave-bull-market

This is an idealized or a blueprint chart of one potential wave pattern for our present bull market in gold, gold stocks, and  crude oil. Presently we are around or getting close to the “B” wave bottom in Minor degree, with a “C” wave bullish phase still to play out. For the majority it will end up just being a plain bull market, but where we may expect a 4th wave correction, would actually be another “B” wave decline.

Even though I show two zigzags in a row, this would still work as a 3 wave bull market labeled 3-3-5. Any Intermediate degree crash could also form with a triangle or even an expanded flat, so that is something that has to be considered when the time comes. 

We should end up by having two “C” wave bull markets in a row, but they will be different because each one is a different degree level. 

The quality of each 5 wave run will always be different, and usally alternates between good impulse waves and choppy diagonal waves. It will be the diagonal waves that help us to determine where we may be at any given time. 

How long this can take is still up for debate, but it will not happen this year or not even 2017.  Eventually this pattern will be pointing up and stocks will be pointing down, which will give us a big clue that a major reversal will be near.    

As you can see, prices are non existing in idealized charts, as the pattern is far more important than the price. 

I always used the Idealized pattern from the EWP book, but found out that in the real world they never look like what they show us.  Matter of fact, chances are good you will never see those idealized waves in the real world, because they don’t exist. You will never find a 5 wave sequence that all are the same length or the same patterns of subdivisions. One or two waves will always be extended, and many times they will contain diagonal wave structures. 

I draw all my idealized charts from memory and adjust and fine tune along the way. If we don’t use idealized charts then how do we know, what we are supposed to be looking for?  RN Elliott had to “see” the pattern before he even devised the labeling scheme. Wave counting is a secondary act, to try and confirm what we see at any given time.

When the market moves in an unexpected wave in Minor degree, then this is enough to initiate a complete review, going back in chart history as far as we have to.  New and better fitting wave positions can only be found in past history, and when we change past wave patterns, then we are also bouncing forwards or backwards in time. 

In this idealized case above, Cycle degree wave III is in our past not in our future. To stay in sequence, the next major Cycle degree bottom will be Cycle degree wave IV!