Should I trade against the trend (MU)

UPDATE: 9/9/2015

Nice bearish engulfing candle confirming the bearish counting. I expect a new low price next weeks.


UPDATE: 8/9/2015

Alternatively, the five waves are completed and we are in correction wave.


sometimes when you analysis stock, you probably find good change to gain some money even you entry against the ongoing trend. For example see the MU chart below:

Here and according Elliott wave principle, the stock fell in three clear and complete three wave which mean there still two waves have to take place, a forth wave (corrective) and a fifth wave (motive). The first wave was a leading diagonal wave and gives good indication that price will fall rapidly. Second wave retrace 38.2% of wave  (i) as zigzag corrective wave. The wave (iii) was very impulse wave creating a huge gap in price and that is natural behavior of third waves.

Now the forth wave is ongoing however we need some time to reveal what kind of corrective wave will be. Alternation in time and pattern between wave 2 and 4 is powerful tool in Elliott wave theory. As wave (ii) was simple, sharp and short, I expect wave (iv) will be sideways, something like flat, double two or double three, or triangle. (ii) was retraced 38.2% of wave (i) so it possible the wave (iv) will retraced 61.8% of wave (iii).

I find this scenario is accurate since the divergence in indicators support the my hypothesis, otherwise there is another possible counting if the scenario unverified  by actual price acting.