Regarding the DOWN wave target

Below is a copy from my reply to a comment:

Regarding the DOWN wave target, my idea is: DON"T GUESS A BOTTOM ! I have mentioned this idea before.

Never guess a top or a bottom !!

Otherwise, you will be trapped by the market.

Just follow the trend, follow the inevitable POWERFUL move. That's the way to make money in the market.

Guessing top or bottom will lead you to a trap ! Why ? Think it for a while by your self !

I can share my view: guessing top and bottom will make you want to sell at the top and buy at the bottom, which is very dangerous. The topping and bottoming process is full of false moves, one mistake could kill your position very very easily !

Nobody knows the exact bottom or top because the nature of both is randomness. And the process to make them are very very emotional. If you don't understand this, the market will TEACH YOU A HARD LESSON sooner or later.

So, what we really need to do is to dynamically follow the market! That's all ! To make money in the market requires no top and bottom GUESSING.

For example: I have mentioned three targets of the DOWN wave:

1. Filling the gap

Once this is completed. If the DOWN wave continues, then it will drop to the second target 1960 after a bounce.

2. 1960
Once 1960 is reached. If the DOWN wave continues, then it will drop to 1940.

So you see the TREND very clearly. Right ?

If this DOWN trend continues after the bounce from 1940, the next one is 1900, and 1880.

Unless the DOWN wave changed direction, it will drop to the next target.

OK. Follow the trend unless the trend is reversed! Never guess the top and the bottom because the market could be bottomless or topless, theoretically, in the extreme conditions.

I usually use the trap-zone and money-making zone to check the trend reversal. For details, please READ carefully the articles in the side bar column Technical Analysis Tips

http://tjts.blogspot.com/2009/05/technical-analysis-tips.html

I will apply my theory to dynamically follow the market here so you will be able to see how I apply the theory to application. I am learning how to apply the stock price development model and then improve it during the process as well.

It's very hard to explain here in a few sentences.