Convention

Color Convention

In this discussion group, we will use traditional Asian terminology instead of the western one. The K 線 (i.e., candlestick chart, 臘燭線) Theory originated from Japan and has been widely used in Asia long before being applied by western traders. The Asian style of coloring is red for up days and black/green for down days.  The theory got embraced by western traders since 1990-ish.  However, they changed the coloring scheme to the opposite of Asian style, but we will still adhere to the traditional Asian style. In other words, if I say red ("紅"), it means up; also, if I say black ("黑") or green ("慘綠"), it means down.

About wave labeling, my preferred count is the purple line, and the grey line is the alternative count. When the market reaches a point where the purple line is no longer valid, the grey line takes over becomes the preferred count.


Label Convention

My labeling for wave degrees in different time frames:
Monthly - [[[I]]], [[[II]]], [[[III]]], [[[IV]]], [[[V]]], [[[A]]], [[[B]]], [[[C]]]
Monthly - [[I]], [[II]], [[III]], [[IV]], [[V]], [[A]], [[B]], [[C]]
Weekly - [I], [II], [III], [IV], [V], [A], [B], [C]
Weekly - I, II, III, IV, V, A, B, C
Daily - 1, 2, 3, 4, 5, a, b, c
Daily - _1, _2, _3, _4, _5, _a, _b, _c
Hourly - __1, __2, __3, __4, __5, __a, __b, __c

My labeling for wave formation in a segment = Wave Name + Wave Formation
For example, [A]3 = 3 segments in a wave [A]
For example, [A]3-[B]3-[C]5 = 3-3-5 formation for waves [A][B][C]
For example, [II]2x3 = double-3 in a wave [II]
For example, [IV]3x3 = tripble-3 in a wave [IV]

My labeling for zigzag is the combination of R.N. Elliott's classical labeling and my wave formation labeling.  DO NOT USE R.P.'s W-X-Y(-X-Z) labeling because it creates confusion and lacks the flexibility of changing wave counts.