A can of worms

Joseph,

Your bringing up a question that’s going to start civil unrest. Here’s my take. And it’s just my view, so take it with a grain of salt. I believe that while the (5-3) or 8 wave pattern does define price, the guidelines or rules for wave configuration in highly leveraged markets tend to get bent. I think for the most part the rules remain intact, but when price in on a stampede it can trample down the corral that would normally contain it, ( or overshoot areas that would generally provide sup/res as the high or lows of prior waves.

Also I do not discount the fact of some minor market manipulation when price is trading near levels, there’s a lot of blackbox, system trading, I think there are times when price is near certain levels that price will be pushed to trip the levels of some systems.

I thought that Frost and Prechter mentioned leveraged markets in the book but I am unable to find it this morning, need more coffee…….

In a nut shell, yes I think they can over lap, albeit slightly I can't see wave 4 having lunch with the end of 2 , but more on the smaller time frames. I don’t think this is the norm (need some sort of structure or the whole things useless) just I keep it in the back of the noggin that’s it’s a possibility.