Registered: Sep 2011
08-01-12 06:37 PM
Drawing a trend line under a corrective (not impulse) wave is, as you found, a messy proposition.
More utility can be had by observing the price pivots; i.e. a series of higher lows & higher highs = up trend still in effect, in this case.
A characteristic of corrective waves is lethargy and volatility - they go nowhere yet thrash like a fish in a net.
You want to trade the fish that swims.
So if you can imagine yourself being the price, use your mind's eye to visualize when the fish gets thrown back into the water and starts to take off in a bolt of panic........ this is your cue