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EWT: Does the essential form have to be five waves and three waves?
Five waves and three waves is the minimum requirement for achieving both
fluctuation and progress in linear movement. The fewest component waves to
create fluctuation are three waves. To achieve progress in one direction
despite corrective movements, the main trend must be at least five waves.
The five three concept allows five waves to cover more ground than the three
waves and to contain periods of regress. The most efficient form of
punctuated progress is 5-3.
Application of the concept to phenomena in nature seems logical, but
markets are all but natural, they are social and economic. The markets do
not always follow a perfect concept that implies a complete 5-3 cycle
efficiency.
The concept behind the Excelsior EFM model implies that the wave counts
may be above 5, 7, 9 etc. The most important question you have to ask
yourself is "What is the reasoning behind the 5-3 cycle concept everyone
seems to accept without questioning it?"
We do not argue that markets never form 5-3 cycles. We argue that markets
not necessarily have to follow a 5-3 cycle concept as the 5-3 concept
assumes:
Linear market behavior
Efficient market behavior
In simple words: our model uses objective measures (non linear, adaptive)
instead of wave and count fitting to identify waves and calculate count labels.
The future of the Excelsior EFM add-on for TS2Ki:
Due to the enormous problems with TS2Ki causing continuous re-calculation
of studies we will probably not release the Excelsior EFM (RT) add-on for
TS2Ki. We will offer the add-on for MetaStock and other platforms.
John Miller
Excelsior Technologies Inc.
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