These charts look like they are very steep, which is the only way to squeeze them onto a single 8X10 chart. Many templates I print out in 22×28 format as I post them on my wall in my small home based office. The first chart below will give you an idealized wave count from the 1932 bottom, to a Grand Supercycle degree wave 3 top, sometime in the next century. The 1932 bottom is my wave Zero to the start of 5 waves in Cycle degree.
This may not make sense, but it would make sense if we visualize the Elliott Wave principle as one single impulse wave, which started after our planet started to climb out of the last ice age. Wave Zero in Supermillennium degree started about 11,000 BC, when farming began to spread. Commercial farming produced enough food to allow cities to grow into city states and empires.
Here is a good link that talks about starting to grow food 13,000 years ago when the CO2 content started to go above 240 PPM.
Of course the reverse happens when our earth dips into a mini ice age condition. We had many deep cold spells in the last 10,000 years, and expecting no more cold spells in our future, is just wishful thinking.
In one single impulse for the general stock markets, we get an idealized count of 1-2, 1-2, 1-2 waves, where wave 1 is always the shortest and wave 3 is always the extended wave. Three sets of 1-2 waves will extend wave 3. This makes the 5th wave one of the shorter waves, and most of the time fundamentally the weakest as well. It is a 4th wave crash that crushes the fundamentals, making the 5th wave very weak.
The majority of new wave analyst, joined in after 2000 as it seems the EWP book spread far and wide with the Internet at that point in time.
The idealized chart or script above starts back with the 1932 bottom showing some dates. This gives us a potential 2017 Cycle degree wave 3 top, with a bottom by 2021 or so. From any 4th wave bottom, we always must get a 5 wave bullish run that must also be a specific wave count. In this case, and from the Cycle degree 4th wave bottom, the EWP shows us we are supposed to get 5 waves up, in Primary degree. From 2009 to 2017 we already have 5 waves up in Intermediate degree, but the next bull market has to be one degree higher. 5 waves in Primary degree would finish Cycle degree wave 5 and terminating at a SC degree wave 3 in green, on your top right.
Some of the last 4th waves I show with a triangle, but I think big triangles are very rare, so the chart above I turned it into a flat.
The chart above is presently our current picture with Cycle degree wave 3 on your top left, followed by a flat to a Cycle degree 4th wave bottom, which can also turn into a zigzag. After the Cycle degree 4th wave crash, we get a roaring bull market that could last for another 8 years, to the 2029 time period. This is also when SC degree wave 3 will end, and another SC degree bear market will start.
We are already reading reports how the super bearish expert wave analysts are expecting a depression. Just like no depression happened in 2009, I’m sure we will not get one even with a SC degree crash after 2029. Sure we will get recessions over and over again, but the solar cycles have trashed depressions in the past. To get a full fledge depression, the majority of us will have no money and no job, and there would be no inflation. There would also be a big reduction in Millionaires and Billionaires in the world, as their wealth goes up in electronic smoke.
Besides that, we are not in the1930s anymore, where they had no general support. In todays world, we can send money to anybody in an instant, via auto debt. How many pensioners get their checks as auto deposits? Our Canadian government loves to see all of us on auto deposit, as tax refunds can happen at lightning speed.
The next chart below starts where the chart above finishes.
Again, up on your left is a green wave 3 which is Supercycle degree. I use the same template as the only thing that changes are the degree levels. We would also be well past the 2030s going into another huge crash, as a potential flat. SC degree Wave 1-2 from 1929-1932 sure looks like a zigzag, so SC degree wave 4 has a very good chance of being the opposite. I think any SC or even GSC degree triangle will not happen as they seemed to be rare indeed. Besides, every 4th wave correction, we have had, is a different degree level, so flat corrections can repeat themselves many times. I don’t mean double flats as they are extremely rare, to the point they don’t exist.
If we don’t understand how the 5 simple charts fit together, how do we know what we are supposed to look for? The three charts above will give you an idea what to look for, as the EWP is far easier to understand from an idealized chart perspective. Ignoring extensions and forcing these extensions in a 5th wave will always push us into a higher degree, where we should not be.
I spent many years, counting in GSC degree and then switched down to counting in SC degree. Finally, I switched into Cycle degree in 2013. All Cycle degree wave positions must be found first, before we will ever see any SC or GSC degree wave patterns. This blog is dedicated in doing just that, as the EWP is far more valuable than just using it for short term trade setups.