This framework helps contextualize market structure and identify potential price zones under defined conditions. By integrating Fibonacci analysis with the OBLX Structure Taxonomy, we ensure that technical analysis remains objective and free from discretionary bias.
OBLX Taxonomy: A Professional Standard
CWCOUNT uses the OBLX Taxonomy to classify wave structures with precision. Unlike conventional approaches, our identification of Diagonal patterns is based strictly on Position and Structure, rather than visual shape.
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Leading Diagonals: Occur in Wave 1 or A, following a 5-3-5-3-5 internal structure.
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Ending Diagonals: Occur in Wave 5 or C, following a 3-3-3-3-3 internal structure.
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Impulse Waves: Defined by a standard 1, 3, 5 progression with a 5-wave motive structure.
Brian Kim’s Rules of Engagement
To maintain the highest level of system integrity, we apply 16 core rules that define how our engine processes market data:
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Price Reference (The Wick Rule): We rely exclusively on the Wick (extreme price) for all structural measurements and invalidations.
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Absolute Invalidation ($0\%$ Tolerance): Our system follows a hard Boolean logic. If a price level is violated by any margin, the count is invalidated immediately.
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Secondary Fibonacci Role: We treat Fibonacci ratios as supporting confidence factors, not as primary validation gates. Structure and price behavior always take precedence.
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Irrelevant Alternation: While traditional theory emphasizes alternation between Waves 2 and 4, our system treats this as irrelevant to structural validity.
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Volume as Confirmation: Strong volume increases our confidence score but is never a requirement to validate a motive structure.
Result Delivery: Targets and Likelihood
Our output is designed for professional clarity rather than speculative precision:
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Target Zones: We project expected movements as price zones or ranges, acknowledging the fluid nature of market liquidity.
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Relative Terms: We express outcomes through ranked confidence labels (e.g., “more likely” vs. “less likely”) instead of fixed percentage odds.
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Rule-Based Discipline: We stick with a wave count until it is technically invalidated by an absolute rule-based level.
Structural Confirmation
A structure is only upgraded from tentative to confirmed through a combination of signals, including impulsive follow-through, key structural level breaks, and successful retests. This multi-signal concurrence ensures that our analysis remains grounded in objective market evidence.
