Powerup Capital Review #59

Regardless of how strong a long-term market trend is, the market never moves only in the direction of the long-term trend – there are always minor movements against the longterm market trend.

These deviations usually don’t last very long and after them the market moves again in the direction of the long-term trend.

The major market movements in the direction of the long-term market trend are called impulsive waves and the minor market movements against the long-term market trend are called corrective waves.

A bullish signal occurs if the active wave is recognized as a downward corrective wave. That means the active wave was downward and the whole candlestick was found above the upper confirmation level (0.750).

A bullish signal also occurs if the active wave is recognized as an upward impulsive wave.That means the active wave was upward and the whole candlestick was found above the upper confirmation level (0.750).

A bearish signal occurs if the active wave is recognized as a downward impulsive wave.That means the active wave was downward and the whole candlestick was found below the lower confirmation level (0.250).

A bearish signal also occurs if the active wave is recognized as an upward corrective wave. That means the active wave was upward and the whole candlestick was found below the lower confirmation level (0.250).