The price of Wheat was at a low point recently. The question was, which way will it go from here? There was professional opinion abroad in the land to the effect that its prices must decrease, because the wave counts said so. The difficulty with reliance upon wave counts alone is that it pays no regard to the underlying psychology of the marketplace. Wave counters do not have the tools before them which can uncover those hidden currents that can make all the difference in the future course of price action.
In our practice, we start with the premise that Candlestick presentation of prices, all by itself, provides clues as to what the traders are thinking. Sometimes those clues are very obvious, such as those occasions when a three-bar reversal pattern appears. Other clues are more subtle. All of them are enhanced when we add to the Candlesticks our interpretation of the relationships between the waves of certain Indicators which we use. When all of these tools are put together in one package, which we call “Candelaabra,” we then have at hand a really remarkable tool for scouting out reversals in being or even those which are only in the process of formation.
That’s exactly what happened very recently in the case of Wheat. Others had written Wheat off as a declining price candidate, but we thought we knew better, and stayed with it. The proof is in the pudding. While others completely missed the boat, we got in right at the critical time, early, and to date a contract of Wheat has gone up in value about $3,000. It really does pay to be able to spot the clues as they are forming, and to jump on the opportunity.
William Kurtz
April 4, 2009
www.candelaabra.com
