I won't lie I am quite new to Technical Analysis and I have just started learning about Elliott Waves and would appreciate any advice from the community to make sure I am on the correct path...
I have read a few articles about Ralph Nelson Elliott and his theory, I have also watched a few YouTube videos on how to set Elliott Impulse Waves. Most of those video's so setting it up in a bull market. They do go on to explain that it works in a bear market to but no one actually shows you how it is set up.
So if you have a look at my chart could you tell me if my Elliott Impulse Wave (12345) is correct? and if so have I set up my Elliott Correction Wave ( ABC ).
Any advice from more experienced traders out there would be amazing...
You did it wrong. 1 starts where you have 1 ending. Wave 1, 3 and 5 are in the direction of the motive wave direction : in this case: down.
1 cannot go up and then the overall end position of the wave is lower.
Therefore we are currently on wave 4, with one more wave 5 coming down.
EugeneWoodMyLife
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@alexyeoh, ok I have recreated a new chart with it starting at point 1 now it makes more sense as wave 3 is now the long wave. So if I have it correct an Elliott Wave in a downtrend will start at the top of the beginning formation of a double top?
supestv
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@EugeneWoodMyLife, you still have wave 1 starting in the wrong spot. Wave 1 starts at $9150, not ends there.
1 cannot go up and then the overall end position of the wave is lower.
Therefore we are currently on wave 4, with one more wave 5 coming down.