Could the Altcoin season just be getting interesintg with ALGORAND running into an impulse wave?
Let's talk about Elliot Waves.
Certainly! **Elliott Wave Theory** is a fascinating approach to technical analysis that identifies recurrent long-term price patterns based on changes in investor sentiment and psychology. Let's delve into the key concepts:
1. **What is Elliott Wave Theory?**
- Named after **Ralph Nelson Elliott**, this theory aims to predict market movements by observing repetitive wave patterns.
- Elliott discovered that stock market movements follow specific wave patterns, which he outlined in his book titled *The Wave Principle* in 1938.
- The theory combines elements from the **Dow Theory** with the fractal nature of market action.
2. **Basic Principles:**
- **Motive Waves (Impulses)**: These waves move in the direction of the trend and consist of five sub-waves labeled 1, 2, 3, 4, and 5.
- **Impulse Wave**: A straightforward five-wave move.
- **Impulse with Extension**: Similar to an impulse but with an extended fifth wave.
- **Leading Diagonal**: A diagonal pattern within an impulse.
- **Corrective Waves**: These waves oppose the larger trend and consist of three sub-waves labeled A, B, and C.
- **Zigzag**: A common corrective pattern.
- **Flat**: A sideways correction.
- **Regular Flats**: Standard flat correction.
- **Expanded Flats**: A more complex flat correction.
- **Running Flats**: A variation of flat correction.
- **Triangles**: A consolidation pattern.
- **Double Three**: Two corrective patterns combined.
- **Triple Three**: Three corrective patterns combined.
3. **Wave Degree and Fractals**:
- Elliott Waves exhibit a fractal nature, meaning smaller patterns fit into larger ones.
- The Fibonacci relationships between waves enhance anticipation and prediction.
- Think of it like broccoli: Smaller pieces resemble the larger piece.
4. **Application**:
- Traders use Elliott Wave Theory to identify potential trading opportunities with favorable reward-to-risk ratios.
- By understanding these wave patterns, traders can anticipate market moves.
Source: Conversation with Bing, 3/1/2024
(1) Impulsive 5 wave structure - Ground Rules | Learn Elliott Wave | Elliott Wave Theory. www.youtube.com/watch?v=KRmuvKyL...
(2) ELLIOTT WAVE THEORY (Part 3): Impulses and Diagonals . www.youtube.com/watch?v=_y8cHG5P...
(3) Elliott Wave Theory for Beginners | ULTIMATE In-Depth Guide!. www.youtube.com/watch?v=a5tI8CWi...
(4) Elliott Wave Theory: Rules, Guidelines and Basic Structures. elliottwave-forecast...lliott-wave-theory/.
(5) Introduction to Elliott Wave Theory - Investopedia. www.investopedia.com...echnical/111401.asp.
(6) Elliott Wave Theory - Overview, Types, Market Applications. corporatefinanceinst...lliott-wave-theory/.
(7) Elliott Wave Theory: What It Is and How to Use It - Investopedia. www.investopedia.com...liottwavetheory.asp.
Let's talk about Elliot Waves.
Certainly! **Elliott Wave Theory** is a fascinating approach to technical analysis that identifies recurrent long-term price patterns based on changes in investor sentiment and psychology. Let's delve into the key concepts:
1. **What is Elliott Wave Theory?**
- Named after **Ralph Nelson Elliott**, this theory aims to predict market movements by observing repetitive wave patterns.
- Elliott discovered that stock market movements follow specific wave patterns, which he outlined in his book titled *The Wave Principle* in 1938.
- The theory combines elements from the **Dow Theory** with the fractal nature of market action.
2. **Basic Principles:**
- **Motive Waves (Impulses)**: These waves move in the direction of the trend and consist of five sub-waves labeled 1, 2, 3, 4, and 5.
- **Impulse Wave**: A straightforward five-wave move.
- **Impulse with Extension**: Similar to an impulse but with an extended fifth wave.
- **Leading Diagonal**: A diagonal pattern within an impulse.
- **Corrective Waves**: These waves oppose the larger trend and consist of three sub-waves labeled A, B, and C.
- **Zigzag**: A common corrective pattern.
- **Flat**: A sideways correction.
- **Regular Flats**: Standard flat correction.
- **Expanded Flats**: A more complex flat correction.
- **Running Flats**: A variation of flat correction.
- **Triangles**: A consolidation pattern.
- **Double Three**: Two corrective patterns combined.
- **Triple Three**: Three corrective patterns combined.
3. **Wave Degree and Fractals**:
- Elliott Waves exhibit a fractal nature, meaning smaller patterns fit into larger ones.
- The Fibonacci relationships between waves enhance anticipation and prediction.
- Think of it like broccoli: Smaller pieces resemble the larger piece.
4. **Application**:
- Traders use Elliott Wave Theory to identify potential trading opportunities with favorable reward-to-risk ratios.
- By understanding these wave patterns, traders can anticipate market moves.
Source: Conversation with Bing, 3/1/2024
(1) Impulsive 5 wave structure - Ground Rules | Learn Elliott Wave | Elliott Wave Theory. www.youtube.com/watch?v=KRmuvKyL...
(2) ELLIOTT WAVE THEORY (Part 3): Impulses and Diagonals . www.youtube.com/watch?v=_y8cHG5P...
(3) Elliott Wave Theory for Beginners | ULTIMATE In-Depth Guide!. www.youtube.com/watch?v=a5tI8CWi...
(4) Elliott Wave Theory: Rules, Guidelines and Basic Structures. elliottwave-forecast...lliott-wave-theory/.
(5) Introduction to Elliott Wave Theory - Investopedia. www.investopedia.com...echnical/111401.asp.
(6) Elliott Wave Theory - Overview, Types, Market Applications. corporatefinanceinst...lliott-wave-theory/.
(7) Elliott Wave Theory: What It Is and How to Use It - Investopedia. www.investopedia.com...liottwavetheory.asp.