A reader has posted a comment that he ran into trouble with the rule that the 3rd wave cannot be the shortest. (I bought your book and reached the “Rules of the game” Tried to implement it on the DFM Index Chart Starting from the March 2011 bottom i started marking.
I marked end of wave 5 at the end of April 2011 end, but when i tried to apply the rule “Wave 3 can never be the shortest impulse wave” it didn’t work (March 15 to March end). Please advise what i need to do next or you could you mark the DFM index chart)
So today’s post is just an example. (Unfortunately I won’t be able to do this every time a reader has difficulty in counting the waves of a stock that he is interested in!! But my suggestion is to follow the rules as explained, and change your count where necessary)
The most important point is this: don’t worry about having to change your count later on. So long as you are foillowing the rules and guidelines you should be able to take low-risk positions. If you want to tweak the count to suit your personal views, then you are taking the wrong path.