Demonstration of the Wave principle in real life KRE

22 mar 2023

If you want a demonstration of the Wave principle in real life look no longer than KRE.

It is a textbook example of an impulse wave started on 23 March 20220.

Wave almost 61.8% retracement of Wave 1

Extended 3rd wave with a 2.00 multiple of Wave 1

Wave 4 has almost 0.382 retracement of Wave 3.

And the most important one: the entire impulse wave is divided perfectly into golden ratio. 0618/0382




This impulse wave finished on 19th January 2022. Since then the corrective phase has begun.

We have 2 viable scenarios over here

Scenario nr 1.
An ABC zigzag



We clearly have a minor impulse wave down finished in 5 waves that could be intermediate wave (A).-finished on 16th June 2022

Followed by a running flat ABC for wave B. notice the truncation of minor wave C of (B) warning us about the underlying selling pressure in KRE.

And that's precisely what happened in wave (C). That is what an impulse wave 3 of (3) looks like. Fear response appropriate!

The Fibonacci ratio for wave (B) is precisely 0.382 retracement of wave A . The most common one in a zigzag.


Guideline of equality
Waves (A) = Wave (C) at $42.65 normal in a zigzag. So with this interpretation probably one more minor wave down and everything will be roses in the regional banks.


What is not normal in a zigzag is the slope of wave C should be less aggressive. So this brings me to an alternate count.


Scenario nr 2



Because of the slope and severity of this late sale this makes it a wave 3. As I said before has all the marks of impulse wave 3 down in this case.

So the whole correction becomes just waves 123 with waves 4 and 5 still to come to make just wave (A) of the decline.

I will leave it up to you to decide which interpretation is most appropriate.

Legal Disclaimer: The information presented in this analysis is solely for informational purposes and does not serve as financial advice.