Hey traders! Short lesson in wave theory and pattern analysis here. Advanced patterns and EW theory are great supplements to one another. I find that the most successful advanced patterns are "pieces" of waves and that each pattern correlates directly to a corresponding wave count. I like the Gartley
for trading zig-zags because we can target higher targets than the XA termination of the advanced pattern
. Here, a Gartley
could complete to spark the rally to the end of a zig-zag
. From target, we can either continue into a double zig-zag
or continue the drop toward bearish
targets. Happy trading!