How To Anticipate A Turning Point - Adobe Inc

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Yesterday, I showed you two charts of Adobe. If you had missed that, you can read it here.

In today’s post, we will delve a bit deeper. My goal is to give you examples that help you learn techniques that you can use in your own trading. The following charts of Adobe (NASDAQ: ADBE) continue with what we discussed in yesterday’s post. But before we continue, would you like to show your appreciation of this gesture by visiting the advertisement of the sponsor above? This will ensure that you receive this newsletter regularly, and it takes only a minute or so of your time.

Thank you! Now let us continue.

You noticed that Wave B had recovered to the 70.7% retracement of Wave A. Curiously, this 70.7% ratio, which is not a Fibonacci ratio by the way, keeps showing up again and again in Adobe’s charts. You should be alert to such a phenomenon.

We are now going to carefully examine the details of Wave C, as this will enable us to anticipate a turning point before it occurs, or at least soon after it begins its move in the opposite direction.

As you know from my book “Five Waves to Financial Freedom”, we can anticipate the target for the fifth wave by computing the distance from point 0 to point 3, and projecting certain ratios of that distance from the top of wave 4. In the case of Adobe, we find that the 70.7% measure (!) corresponded with the 123.6% target for Wave C itself.

Remember this. We need to spend a few minutes every day reviewing the stocks in our watchlist to see which ones are approaching their potential end of wave 5. Focus your attention on these stocks, and you will know where there are low-risk opportunities. I teach techniques like this in my online course at https://elliottwaves.com.

I hope you liked the above, and if you haven’t visited the Ad at the top, please do so. See you again in a few days with more posts like this one. Until then, Sayanora!