Overview of the Elliott Wave Theory

The theory of Elliott Waves, an intricate subject we've delved into in previous posts, beckons me once more to distill its essence. Let's gather the pivotal elements anew, unraveling the complexities to forge a deeper understanding.

Elliott Waves exhibit fractal characteristics. Each wave possesses segments that closely resemble the entire wave, a quality known in mathematics as "self-similarity."
A trending market adheres to a distinct 5-3 wave structure.
The initial 5-wave pattern is termed the impulse wave.
One among the three impulse waves (1, 3, or 5) always extends, with Wave 3 typically being the elongated one.
The subsequent 3-wave pattern is recognized as the corrective wave, denoted by letters A, B, and C in lieu of numbers for tracking the correction.
Waves 1, 3, and 5 consist of smaller 5-wave impulse patterns, while Waves 2 and 4 are comprised of lesser 3-wave corrective sequences.
While there exist 21 varieties of corrective patterns, they fundamentally stem from three straightforward and comprehensible formations.
These core corrective wave shapes encompass zig-zags, flats, and triangles.
Three fundamental principles define the labeling of waves within the Elliott Wave Theory:
First Principle: Wave 3 must NEVER be the shortest impulse wave.
Second Principle: Wave 2 must NEVER surpass the commencement point of Wave 1.
Third Principle: Wave 4 must NEVER overlap with the price region of Wave 1.

Upon thorough chart analysis, you'll observe that the market indeed advances in waves.
Since the market seldom conforms precisely to theoretical models, honing your ability to analyze waves requires extensive practice over numerous hours before you find yourself at ease with Elliott waves.

🙌🏻Persevere diligently and remain steadfast in your pursuit!Happy trading!
Your Kateryna💙💛