The best time to short is after 5 waves down (i. e. wave 1) and 3 up (i. e. wave 2). The important question now is how far wave 2 will retrace.
1 - The all time high. The candle stick pattern looks very similar to today: A doji was followed by a big red candle which closed at the low of the week. The next week was up and retraced more than 62% of the first wave.
2 - The top of Intermediate wave (2). Yesterday, I recieved an email with the following chart:
1 - The all time high. The candle stick pattern looks very similar to today: A doji was followed by a big red candle which closed at the low of the week. The next week was up and retraced more than 62% of the first wave.
2 - The top of Intermediate wave (2). Yesterday, I recieved an email with the following chart:
In both cases the new downtrend started with some strong down days. The following second subwave of the first downwave of Intermediate (3) was very short, less than a 50% retracement.
3 - Today. Again a big red candle which closed at the low of the week. There are two fractals in the recent past which call either for a big or a short wave 2.
So it may be quite difficult to short the top of wave 2 since we may not get the usual 50-62 % retracement.