The Long Investor
patreon
LESSON - REGULAR FLAT CORRECTION
🕑 Added 2025-04-15 12:27:11 +0000 UTCIllustration showing how a 3 Wave pull back for Wave A can still complete as an ABC correction overall.
So far the $SPY has pulled back in 3 waves, this much is clear.
Leading many to believe that a higher high can be made next and the pull back to $481 was Primary Wave 4 (Contrarian View)
But a Regular Flat Correction is common and it does catch many people out.
This is why we must observe how the price action behaves at the 50 WMA but also, if we see a Bounce in 3 waves higher then it can only be a Wave B.
Because if it is the Contrarian View then it needs to bounce in 5 waves, as an impulse wave.
So we will be watching this very closely, it must be noted too that Wave B in this formation bounces very high, effectively back to a double top and rejecting.
Comments
Stephan Cheatham
Can you show the possible views overtop the SPY chart?
