The Fuzzy C
What is a fuzzy C? And what is a fuzzy count? Simple really. It’s applying fuzzy logic to wave counting; it’s partial truth logic applied to Elliott Wave Analysis.
Is it effective? Sure is. Look at the below charts; the first the heads up for MFW bullish bias and impulsive count, (see here too), the 2nd the +277% profit in a little over 4 months. There is more commentary on the price action of MFW this year at Scuttlebutt.
So what are the rules? Well first of all, fuzzy counting is not formal Elliott Wave counting, so expect to see rules broken, and ‘fuzziness applied’, but it’s within definable and reasonable limits. It’s not just a matter of “making it all up”. Correctives don’t ever go beyond ‘c’, anything beyond ‘c’ is ‘wash’ until the next impulse is delivered.
One should view a Fuzzy C as the line in the sand as far as chart bias and crucial support and resistance. A fuzzy C is support until it’s broken, then it becomes Fuzzy C resistance. Consider Fuzzy C as a very important pivot line.
An important thing to remember about Fuzzy Cs is that price has a very high potential to move with increased volatility away from one. If you’re long based on Fuzzy C support it is wise to place your stop beneath that C. Alternatively, if you’re short based on Fuzzy C resistance, it is wise to place your stop above the Fuzzy C.
There are many examples of my Fuzzy logic counting at this site and my forum at Scuttlebutt. I encourage you to flip through the pages looking at the charts, and viewing how I count moves.
Remember that counts do change, and sometimes fuzzy counting needs to be recounted. Such is life with formal Elliott Waving too; one never knows when the market is going to produce subwaves within a bigger count, or when a market is going to completely ignore a count and price action will do what price action will do; reflecting broader market bullish or bearish intentions.
But one thing is clear about them; previous Fuzzy Cs act as great support and resistance. Mark where they occur and watch price reaction relative to them; it’s fascinating how volatile price action can get moving away from a Fuzzy C. Remember that in the end they are merely a simple tool to use to find great risk/reward setups. I’ll attach sample charts on this page in days ahead.
If you are wondering the origins of the Fuzzy C, it was developed by yours truly. I was motivated to simplify what is a very complex theory, difficult to apply and time consuming. But I give due credit to formal Elliott Wave Analysis, and merely ask for an open mind from formal EW lovers. Fuzzy Cs are to be respected, and while I have faced a small amount of criticism from some traders, I have also received a lot of support from others who have witnessed the power of Fuzzy counting, and in particular, Fuzzy Cs.