7pasos

Decomposing in elliott identifiable structures

FX:GBPUSD   British Pound/U.S. Dollar
394 0 1
One way that i like to analyze a mess of chart as we do have now in the daily GBPUSD             is try to separate what I can easily identify, as starting point.
In this chart using the pattern tool I have tryed to do what my mind do when look a chart under elliott eyes:
First try to find the most simple and precise pattern (because of it's set of rules) that elliott have, the 5 wave impulse:
so found first the big yellow one at the left, then the next blue one and then the last small brown.
Then i tryed to make a conexion between those impulses to integrate them as a part of a more complex pattern:
For example, the big yellow, given that we came from a big drop, must be the first part of a new pattern, could be the A or 1 of a new trend, but by now lets keep it small and say its only A for simplicity.
Then if the big yellow is A, then the next should be part of a B) correction, we now it cant be all the B because the correction most be a 3 waves pattern and no 5 so this five should be the first part of some with other 2 more legs.
Then thinking that we should have some kind of retrace of the blue impulse found a big zigzag (in pink) what could be seen as the second most eassily recognizable elliott structure.
And from here we have two possibilities: a way to complete the correction of the blue impulse making a motive down wave (which at this point could be developing in a terminal diagonal still under way) or this conforming a even more complex wave to correct the big yellow impulse.
After the big pink zigzag we can isolate two small zigzags (green) separated by other zigzag (thats why i counted as wxy), and then in opposite direction can find what seems a standard flat formed by a up zigzag and an up small five separated again by a fast down move.
So this is the way i find more easy to count a wave, hope this help you.
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out