By market conditions, do you mean the GOX fiasco?
The GOX thing, one can argue, is increasing buying pressure for those "trapped" there. I don't know, I feel like I'm walking on eggshells though and don't like it. Too much work in front of the computer.
I look forward to buying and holding and doing something better with my time in the near future. 

I'm not familiar with EW, but I can comment if you give more info on it?

EM - Fair point, I think, in other words a bounce is going to respond to often resemble a H&S pattern. I guess we can argue that about all the patterns. They all represent shifts in energy to a point. Cup and Handle is also a build up. All the candlestick patterns...

here's a side to side comparison if it helps

not necessarily


I imagine Gox USD inflow is currently like turning off the water spigot that you fill up a bucket with. As you turn it off, the water inflow to the bucket becomes more and more limited, but still, you have lots of water in that bucket. That water isn't going to go anywhere unless it is (with)drawn out, or evaporates (through transaction fees). The act of people selling bitcoin on Gox would be akin to picking up water and pouring it in another part of the USD bucket, and in doing so, the other party gets something (BTC) for it. Prices should be higher to reflect this.

Though a higher bid/ask ratio typically and historically is bearish, in Bitstamp's current situation that might not be necessarily true IF the overall bitcoin market is bullish. As Bitstamp absorbs mtgox's asks from mtgox's predicament, Bitstamp is only slowly growing on the bid side from only steadily increasing market share for the purchase of bitcoins. As in, the only reason why the greater supply of coins on the Stamp isn't dragging prices down as much (S/D on bitstamp definitely a factor though, I guess that the price on Stamp is relatively lower for this reason), overall demand of Bitcoin outweighs the greater supply/demand ratio on Bitstamp ie why Bitstamp prices have absolutely gone up as well

Hopefully Bitstamp gets some more USD inflows to equalize as time passes and
at least until they resolve the concern that any Gox fiat depositors and BTC sellers will not be able to withdraw their Gox fiat. Until the fiat on Gox can be withdrawn, the arbitrageurs cannot take advantage of the lower Bitstamp prices, and Bitstamp's bid side has to depend upon new money (and it does look like all this new Bitcoin money is being funneled into Bitstamp, not MtGox). This seems to be true, and perhaps it's just that bullish that things are working out as well as it is so far.

I stand by my other hypothesis a few pages back that our reversal is in part a result of MtGox's troubles and though it's counterintuitive, considering how we have handled it thus far, overall it's bullish as ever. The fact that new USD Bitstamp inflows are countering the downwards pricing effect of Bitstamp taking on a lot of MtGox's selling pressure suggests so.
https://bt.irlbtc.com/view/178336.msg2837009#msg2837009
https://bt.irlbtc.com/view/178336.msg2837036#msg2837036

It is not true that the bid side on Bitstamp is weak, there is much hidden power behind, especially since most of the buys are driven by Bifinex.

Yes, but if this would be possible the difference would get lower and lower (probably gox going down to bitstamp level). Because of Bitfinex Bitstamp is sometimes so unrational (like 400 buys now).

Bitfinex allows both short and long.  But I think the margin trade is running out of money for people to borrow.

Vokain I agree, what I am trying to say is that Bitstamp changed soooo much since Bitfinex started using them and one should expect unrationality (there were so many examples when I was screaming "what a stupid buy").