What is NEoWave "Reverse Alternation" in a Triangle?

Most students of wave theory understand the concept of alternation as it applies to impulsive patterns, but are unaware that the same phenomenon that impacts development of waves 2 and 4 also impacts waves b and d (under NEoWave Theory) within all Triangle formations.
If a Contracting Triangle is unfolding, but wave-b is just around 38.2% of wave-a (instead of 61.8% or more), then wave-d (to create proper alternation) must be larger than wave-c. This creates a Contracting Triangle that follows all the important rules (i.e., wave-c is 61.8% of wave-a and wave-e is from 38.2% to 99% of wave-c, plus wave-a is the most violent in the pattern), but the Triangle does not channel as you would expect during contraction. Instead of the trendlines converging to a point, they will tend to be parallel.
If reverse alternation occurs in an Expanding Triangle, wave-b is likely to be around 138% (or larger) of wave-a, which then allows wave-d to be much smaller than wave-c. Wave-c must still be larger than wave-a and wave-e must be larger than wave-c, but the behavior typically seen between waves-b and d switches places, creating NEoWave Reverse Alternation.

NEoWave Pattern Discoveries

New Discoveries that were not addressed by Glenn Neely in his maiden book Mastering Elliott Waves

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Time Limits of a Corrective

A Look at Dollar Index

Dollar Index seems to form a textbook Double combination. A Double combination is 2 corrective joined with an x wave.

The abv figure shows a double combination from Mastering Elliott Wave which consists of an Elongated flat and contracting Triangle.

In our case of Dollar Index similar situation exist . We have Double Zigzag as first corrective and then a contracting triangle as second.

Final leg e of the contracting triangle seems to form a double zigzag too with c as terminal

impulse.Initially it should head towards 79 and 86$.

Sensex Daily Plot

Sensex Daily Plot 08/04/2011

Sensex Daily Plot

Sensex Daily Plot 26/03/2011

NEoWave Question of the Week

Question: How much can wave-2 retrace of wave-1? Most orthodox EW analysts allow 99%, but it appears NEoWave only allows about 61.8%. Answer: The amount wave-2 is allowed to retrace of wave-1 depends on two, important questions. Is the larger impulsion Trending or Terminal and is wave-2 a monowave or does it subdivide into an a-b-c? Let's address each variable one-by-one. In TRENDING Impulsions (this is where waves-2 and 4 CANNOT share any of the same price territory) 1. If wave-2 is a monowave, it should NOT retrace more than 61.8% of wave-1 2. If wave-2 subdivides into an a-b-c, on rare occasions, wave-a might retrace more than 61.8% of wave-1, but wave-c (of wave-2) must conclude at 61.8% or less of wave-1. In TERMINAL Impulsions (this is where waves-2 and 4 MUST share some of the same price territory) 1. If wave-2 is a monowave, it CAN retrace more than 61.8% of wave-1 2. If wave-2 subdivides into an a-b-c, BOTH waves-a and c (though not required) can conclude beyond a 61.8% retracement of wave-1. It is during Terminal patterns that wave-2 is allowed to retrace as much as 99% of wave-1, but never 100% or more

NEoWave count on Sensex Weekly

Sensex seems to have completed its wave B with truncated wave c of Double Zigzag. As a result wave C down opens which can consume around 16-18 months.(As per Neely in a Flat wave C is equal to time taken by A+B/2).

Now there are 2 possibilities

Either wave C takes normal imuplse

Or it can be Terminal Impulse.

As of now its not clear which shape it takes. So I continue to label it as both 1/a , 2/b....

Now as wave C could take 16-18 months of time , its more probable wave C takes shape of Terminal impulse, in which wave 4 over laps wave 1.

In terms of Price wave C of a Flat can be either of the three.

Normal...

.if in terms of price wave C = wave B. as per this wave C could reach 8000.

Elongated....

.if in terms of price wave C is atleast 127% of wave B, as per this wave C could reach as low as 4500.

Truncated...

.if in terms of price wave C is less than that of wave B, in this case wave C could be in range of 11k - 12k

So its best for investors to stay out of the equity market for atleast 18 months. Buy and Hold is not right strategy.