Volume is a lagging indicator. It is characteristic of the third wave to have the most volume, and characteristic that there is less on the fifth wave. it is characteristic that volume dries up at the end of wave C. It is written about in the EW principle, but its just not useful to us. Really you want to be in the right position before the volume arrives.

there is no structure in EW of 5-3-3. This you have to know.
 

A five wave structure of 3, 3-3-3-3-3 (expanding, contracting, diagonal) may be impulsive in the form of wave c within a 5-3-5, v within an impulse (not a triangle though), an expanding diagonal may be a primary wave, but thats the only case. A triangle is not considered an impulse (i think?) but it is technically 5 waves. triangles are corrective none the less.

There are a lot of rules to know, dont underestimate that, but they are all simple and in simple terms. along with the rules, there are guidelines of how known structures tend to interact with one another, this is where character of structures comes into play. It is to easy to dismiss EW as astrology until one recognises how evidence compiles by guidelines and wave character to support counts. This is the element of plausibility, where the hard rules are the element of validity. Spend a few years studying EW and there will be magic times. It cant happen very often, but sometimes the form of a count is strong and supported by many various and compounding factors of evidence.The market tends so strongly to play out to textbook EW guidlines, not only in direction but character also, that those involved could hardly deny that it is truly the nature of the market observed. The best examples of this happening are the modest moves, Ending diagonals and triangles in particular.

Every single market is at some stage within an impulse. look for the third wave, its all about the third wave. you cant miss it, the beautiful string beans, its da money honey. Its your EW compass. Even if the larger structure is a correction within a larger impulse there will be impulses. find the third wave, find the impulses, then find the corrective, and make it all valid. Its hard, but the process is built upon simple premise. Finding the count that is ideal on all time frames is really hard, small time frames give way to larger time frames, so start big and zoom in, not vice versa. You might find that an RSI might help you make decisions if wave v, for example, is unclear. An RSI signal is a compliment to the EW princile generally speaking. Get a good EW book and memorise the rules. Subscribe to EWI and watch videos of many pros in real time who do a consistent quality service.


Tell me, where is the key stone third wave in this chart? (there are two examples of major third waves, each may help you find your bearings, several examples of minor third waves, these help too.)





...... this is the answer. technically the circled third wave is of higher degree, but thats a really odd example. I would say the highlighted third wave is by far more obvious and more helpful to the analysis.



then by habbit you should rate the degree of any reversal, usually one degree of count takes the price from one local extreme to another.  You can quite easily see there are many significant reversals in this chart, rate them by their significance.





Now Im sure that you could have count this if you tried, but you need a more specific knowledge of the rules to know what comes next. you have an obvious 5 and 3 there, as illustrated. what follows breaks out of the downward channel (impulses tend to trend in a channel, this i reversal warning) and looks like an abc. you would know that there is no structure in EW as a 5-3-3, and you would know that there is a rare structure of 5-3-5-3-5 that takes a contracting shape like a triangle called a leading impulse.

On the smaller time frame we can clearly see we broke down because of a triangle wave b towards 1420. a correction to 1400 would be a fair retrace before we could begin a possible wave c to 1600+/-

BUY @$236.27


aww maybe not

BUY 236.11

EDIT: sorry just realised Im about 30mins too early here. Ill have to wait

EDIT: Do I get a medal for that? 

SELL $239.55

BUY @$241.37


feels like its got a bit more juice in it.

Thanks. I hope not XD

but finally looking a tad bullish 

not yet, in case of ED the break up would have to be sharper than this and we still need to fully retrace the drop from 300. Its not looking good for Dans count.

SELL @$244.38

This is a nice count imo. Valid and fits in quite nicely.

Having said that, the big money has moved for the time being and trading conditions are BAD. Accuracy will be less and whipsaws be be more.

BUY $237.89

ACTIVEE!

It was a good run, but my dominant totally invaldated  

@wanderer, a triangle is actually an idea, just remove the upper trendline, it would be defined by the next rally.

I think this development somewhat entails bullishness, we are not unlikely to see a 62% retrace of the fall down from 1900.

another option is a leading diagonal ( I think Ryan posted this) which would likely need a deeper bullish retrace.

DanV is counting an ED, which entails a full retrace of the whole move down. The count is possible but not wise to assume following the guidelines, we are offered a stellar and key impulse where an ED is a 3-3-3-3-3 mov. it would take us to 320 possibly.


... and heres a little chart

probably only short/medium term

If we have another weeks rest, the count will have changed, it could be bullish. wave iii waits for no man.

Holding tight isnt easy when primary waves tend to retrace 50-62%, so even though the last dump was rather deeply retraced (btce is no longer subject to this analysis!) it fits in rather well with the dominant count. Invalidation at 1440.

OK ... so Ive heard... where is it then?

I wonder if this is the catalyst

http://cointelegraph.com/news/114092/ukraine-central-bank-review-paypal-bitcoin-should-appear-on-market

... btce is in Ukraine