Fractal Forecasting by Ian Copsey

68 I WAVE CHARACTERISTICS

• If Wave 2 is complex then Wave 4 will be simple (and vice versa)
• Following a Wave B in a corrective ABC structure price will retest the

prior Wave B
• After completion of a Wave (v) price will return to the span of the prior

Wave (b) of Wave (v)
• After a Wave (v) the first or second reversal will move to the prior swing

high or swing low, quite often the Wave (iv)

I have covered the topic of alternation quite thoroughly in Chapter three.
Therefore, initially I will focus on the other two, together with another two being
the reversal to a prior swing high or swing low, quite often the Wave (iv) and the
reversal higher to a prior low point, or reversal lower to a prior high point.

·a·

(Y)
[c)

lrll u

�� ��!� ,;��••-.'.·-.��'i'Jrlr IY v
,r· 21\i-;�
{a)
lu .- · o a
[lv]

-�- '"'" '"11"3'''"�--"'-" ""�- "'"""" '""-.,� v T

(c} O!<t

·b·.Wc�-;•,v••�•c---�--<·-•"'"-"#---T''�W�WN�-"'"'�--·

Al<l .M

Fig 4- 1 . Examples of natural targets on reversals in the daily Hang Seng Index

Fig 4- 1 contains nine examples of natural targets in the Hang Seng Index that
are seen soon after a reversal:

1 . Following the completion of Wave -a- the first reversal in Wave i
reached the area of the first corrective low in the prior rally

2 . Following the Wave ii correction we then saw Wave a stall in the span
of the Wave [b] of Wave [v]

3 . The completed 5 -wave decline in Wave (a) stalled just above the Wave
[iv] swing low