Here we go. After calculating extremes, the next point is to calculate and track how price moves to extremes. These are the steps to create waves. Incredibly important. If the waves are constructed incorrectly, the pattern will not show. The nice thing is I can trial and error my way to getting “correct” waves, given that I am viewing data in the correct light.
There are 2 parts: Distinguishing waves, and then finding ways to get excel on the same page. Here are the 3 types of “waves” I think I want to try and start with.
1. Move straight up, hit an extreme, and then retrace a bit.
2. Retrace first, then make the extreme.
3. Make the extreme, then retrace, create a new low, but not lower than the length of the bull extreme.
Put into other phrasing: The extreme high of the day occurs at some point. The extreme low can occur at 3 points, at the open, before the high, or after the high.
It is possible to come up with many more waves, which may be needed. I may only need 4 types of waves (total) instead of 6. Maybe more. Ideas from Rel were flats, retrace into new highs, and others. Lets see if I can start simple first.