BarroMetrics Views: Constructing a Ray Wave Count
Jordan, a new Ray Wave student, asked me for a step-by-step process to construct a Ray Wave Count. The charts provide the visual process, the text the written one.
- Step 1: Place Barros Swings up to the First Higher Timeframe. In Figure 1, the Black represents the 75-period swing, the Red represents the 18-period swing and the Blue represents the 5-period swing.
- Once the swings are in, get a visual feel for the magnitude of the corrective structures.
- Step 2: Work out the magnitude of the corrective waves. If you are using MA6, use the ‘Time-Price Label Tool”.
- You are looking for categories of corrective waves within 20% of one another. In Figure 2, there are three – the 172 +/- 20% (black rectangle), the 127 +/- 20% (blue rectangle) and the 72 +/- 20% (orange rectangle).
- Step 3: Label and identify the ‘make or break’ level for the current corrective structure. The ‘make or break’ level is the farthest level a correction can go without exceeding the bounds of symmetry i.e. exceeding the 20% maximum. In this case for the category of (0), the price is .9320. Acceptance below .9320 suggests a correction of the 172 category is in the works.
- Since wave (2) is complex, wave (4) is expected to be simple. Normally a simple correction will retrace between 40% to 62% but in this case, a 40% retracement would exceed the 20%. So, we’d expect the boundaries of the correction to be between the 33.33% level (minimum correction), .9335 and, the ‘make or break’ (.9320) (the maximum correction).
- Step 4 draws in the possible wave 4 channel and summarizes the action.
FIGURE 1: Step 1
FIGURE 2: Step2
FIGURE 3: Step 3
FIGURE 4: Step 4