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Elliott Wave

Elliott Wave Rules: Quick Cheatsheet for TradersHello everyone! I'm happy to share this Elliott Wave Cheat Sheet that I personally created during my journey. I hope this guide is helpful to the community. This chart is designed to provide a quick, at-a-glance overview of the core Elliott Wave principles and patterns. Please note, it is just a summary of the main theories. To dig into further and truly master the concepts, I highly recommend consulting the foundational texts: * Elliott Wave Principle: Key to Market Behavior by A.J. Frost and Robert Prechter * Mastering Elliott Wave by Glenn Neely ** Best viewed with QHD resolution (2560x1440) ** If the chart appears slightly squeezed vertically, you can adjust the aspect ratio by dragging the Price Panel (Y-axis) on the right side of the chart.** **You can download the PNG version of this chart here: drive.google.com Happy Trading!
Education
by sanbangaje
Elliott Wave or NEoWave? Which on is better?A common question people often ask is: Should I learn Elliott Wave or NEoWave? Which one is better? And do I need to study Elliott Wave first before moving on to NEoWave? Let’s break it down. The classic Elliott Wave theory originates from the book Elliott Wave Principle, written and compiled by Robert Prechter and A.J. Frost. Both authors were not the original creators of the theory .. they simply collected and organized the works of Ralph Nelson Elliott, whose ideas were scattered across various sources, and compiled them into a single book. Given the context of that era .. the trading environment, technology, and available tools .. it’s fair to say R.N. Elliott developed the theory to a level that was almost complete for his time. Back then, there were no PCs, no laptops, no internet… and charts had to be drawn by hand. In that sense, Elliott was genuinely a genius. But despite its impact and popularity, the classical version still contains many weaknesses. And someone eventually stepped in to identify those flaws .. a passionate young man named Glenn Neely, who dedicated himself to studying wave theory seriously and wanted to eliminate the criticism that Elliott Wave was nothing more than “a subjective theory that doesn’t work in real trading.” Because he was born in an era where computers were emerging and technology was accelerating, he had the thought of applying science and mathematics to make wave analysis more accurate and repeatable. After more than seven years of work, Neely published an extremely complex .. and extremely difficult .. book: Mastering Elliott Wave. This book essentially became the foundation of early NEoWave, because nearly all of the first-generation NEoWave concepts were packed inside it. So… which one is better? The answer, without hesitation: Mastering Elliott Wave wins by a landslide. Yes, it’s difficult. But that difficulty comes with benefits: – Higher accuracy – Clearer structure – Much stronger logic These are things classical Elliott Wave simply cannot do. The blue book (Elliott Wave Principle) lacks something crucial that the red book (MEW) provides: a practical and functional Degree system. (The truth is, even MEW’s Degree system isn’t perfect .. which is why I eventually built my own system on top of it.) Neely also introduced time and price principles to calculate Degrees .. determining which waves are major, which are minor, etc. This method does not exist in the classical version at all, which only provides extremely abstract degree labels. So, do you need to learn Elliott Wave first before studying NEoWave? Let me give you a simple analogy. Elliott Wave = manual transmission car NEoWave = automatic transmission car The question is: “If you buy an automatic car, do you need to learn manual first?” The answer: Absolutely not. Even though NEoWave originated from Elliott Wave, the internal logic has diverged significantly. (And in today’s world, NEoWave has already moved far past the classical version.) In fact, I personally believe you shouldn’t study both at the same time .. especially if you’re a beginner .. because the rules of the two systemas will conflict with ech other and waste your time. For example, some patterns that classical Elliott Wave strictly prohibits, NEoWave has tested and proven to be possible. In summary: NEoWave takes the material from classical Elliott Wave and develops it into a far more precise, detailed system. But even NEoWave still has flaws that make real-world trading difficult .. which is exactly why I’m working on improving and modernizing it. At the end of the day, no theory lasts forever, because markets are driven by humans. The psychology of today’s generation isn’t the psychology of people 100 years ago. And modern markets influenced by AI-driven trading are not the same as Elliott’s era or Neely’s era. This is why we need new-generation theories built for new-generation data. - written by me(brainiak/ew-lab) thanks for reading!
OANDA:XAUUSDEducation
by brainiaks
Beginner Friendly! Use Elliott Wave Theory for Directional Bias!Here is a brief visual roadmap showing how a beginner to the wave theory can still access the main benefit of EW Theory... Directional Bias! That thing that keeps you in profit and with the trend, even if you misdiagnose a pattern or have an errant wave count. I've highlighted some of the key benefits to having the correct directional bias and some of the most important properties of using The Elliott Wave Theory as a beginner! I hope this is helpful to someone, if you are struggling with your current trading system or methodology or just someone who needs a different approach, dig into the Elliott Wave Principal as this "Theory" has no doubt changed my life for the better! For Educational Purposes Only.
Education
by Fractical
ETH was this correction a WXY- elliot wave tutorial nine 3 waveIts possible this is wave 4 and crypto is going to make a new ATH. theres no way for me to actually know this until after the fact. but it does look like this to me. wave W is the main chart. to see the other legs see the notes *** Elliott Wave: Quick Guide to W-X-Y (Double Three) Corrections A W-X-Y is a complex corrective pattern in Elliott Wave Theory. If your chart keeps printing choppy overlapping waves that refuse to trend/count cleanly, you’re probably looking at one of these. - What W-X-Y Actually Is A W-X-Y is simply: W = 3 waves X = 3 waves Y = 3 waves So the entire structure is: *** 3 – 3 – 3 (total of nine internal waves which is 27 on a lower degree) W and Y are corrective patterns (they can be zigzags or flats), and the X wave is a connecting correction—usually shallow, sideways, and time-wasting. - What Each Leg Can Be W:ABC or any corrective 3-wave structure X: ABC pullback, often sideways Y: ABC or another corrective structure None of the legs are impulsive. If you see a clean 1-2-3-4-5 impulse, it cannot be W, X, or Y. - How to Recognize a W-X-Y Corrections subdivide into threes, not fives Price action is sloppy, overlapping, and often sideways X wave is typically small relative to W or Y Y often mirrors W in slope, depth, or duration The whole thing looks like “two corrections glued together with an X in the middle” - Where W-X-Y Appears You’ll see W-X-Y commonly in: B waves Wave 4 corrections The middle section of complex pullbacks Crypto consolidations (extremely common)
COINBASE:ETHUSDEducation
by AtticusFreeman
My Ideal Elliott Wave Entry ModelThe IMSETT 3/C Entry Model. Every trader wants to catch the big moves the ones that pay quickly and decisively. In Elliott Wave, those moves often come during Wave 3. It's the strongest part of the trend, and when you're positioned early, the risk-to-reward is unmatched. But not every opportunity hands you a clean Wave 3 on a silver platter. Sometimes you’re looking at a Wave C instead. That’s where the 3/C Entry Model comes in. It’s designed to get you aligned with high-conviction moves—whether the market is in a trend or a zig zag. Here’s the edge: both Wave 3 and Wave C often start the same way—a strong, motive push off an AOI (area of interest), followed by a retracement. That shared structure gives us an anchor. Whether we’re labeling it a 3 or a C doesn’t change the fact that the initial impulse gives us clarity, direction, and a place to manage risk. That’s what the IMSETT Model is built around: Identify Motive Scout Entry Plan Track Trade Each step is focused, actionable, and repeatable. You're not trying to outguess the market—you’re reacting to structure, preparing for common behavior, and executing with intent. I do have a video with a walk through. This just the way I look for clarity in setups. As with everything in trading, nothing will work every time so do your own research this is not financial advice. Cheers! Trade Safe, Trade Clarity.
Education
by CryptoKnee
Where traders tend to failAfter 25 years playing this game, it is incredible to see the same issues today for new traders as there have always been. In a nutshell, OVERCOMPLICATION!!! New traders will often go looking for as much information as possible, adding instruments, screens, indicators, timeframes, news feeds. Anything looking for an edge. Go back over 100 years and Charles Dow - yes, the same Dow behind the #DJI (The industrial average) laid down a very simple framework for understanding the markets. I have written several posts here on @TradingView about Dow Theory here's one of them. Inside this post, you will see this image. For some of you familiar with either Elliott Wave principles or Wyckoff Techniques, you might recognise some elements of an image like this. Both Richard Wyckoff and Ralph Elliott were onto something. But over the years these techniques have been "added to" creating hybrids and then assumptions are often made. Complex is key... Or so they think. When you try and trade an Elliott wave cycle on a 5-minute chart on some instrument that has not been fully adopted by institutional players, you are asking for trouble. Psychology is more important in trading than, quite possibly 99.9% of other aspects of trading. So whilst people tend to add to the technical analysis part of trading, they often ignore the psychology controlling the market. I am not talking about psychology in terms of simple risk management and high probability moves. I am talking about the piece of the psychology studies that controls the masses. Sentiment is one thing, the psychology that drives sentiment is where the failing and struggling traders simply ignore. I wrote a post - trying to add some humour. Here's a Simpson's post. ========================================= Let me give you an example; People tend to use simple off the shelf indicators; now when millions use the same tools. Why is it that 90% + of traders still lose money? Here is a snapshot of the MACD and RSI side by side. Now look closely at the price action. What additional info are you getting from these lagging indicators (rhetorical question). . Let's look at this in a simple way; no indicators, clean chart, Dow Theory in focus. When price moves up you will often see accumulation, then as price reaches it's next area of interest and starts to pullback (oversimplified) you will see, even on smaller timeframes as this is not always obvious on the same timeframe. a distribution pattern. Overall, the price action has created a simple Elliott Wave move from a zero point, up to one and pushing down for a two. Where this gets interesting, and simple... Is the psychology behind it, The momentum up is often created by early buyers (yes, state the obvious) these buyers have been accumulating. Then, as retail jumps in because RSI says so. The price pulls back. This is often deep into the zone it just left, retail often using small timeframes and tight stops - 5 pips, 10 pips. So you often see a PB of 11 pips (example) and you get that feeling of "why does it always hit my stop and then go in my desired direction"? The momentum from taking these stops, then goes on to create an impulsive 2-3 move in EW terms. This is stops becoming opposing orders. Thus creating momentum to break the high of the 1 move. New stops from shorts get triggered and momentum traders enter positions. All of which fuels a larger rally. Now, when you break this down. You can draw ranges and operate inside these ranges to know the general bias. And just like that, you are on the right side of the market more often than not. Here's a more detailed post on this aspect. To give an example here: The larger swing creates a range. An obvious high and low as marked in this image. Then as the move inside happens; Think Dow Theory; The market is giving a very clear clue. We just took out a fresh high and the market is seeking liquidity. That internal move will have a fractal move inside; let's call that a trigger move. Keep in mind, the larger trend does not change it's directional bias until it breaks the old low or the fresh high. Now, although the price does not have to. The price can pull all the way back to the low and not change the larger trend. Once you get to grips with this, you will stop trying to predict the market and instead work with price action. Less, really, is more! Have a great weekend!!! Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principal trader has over 25 years' experience in stocks, ETF's, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
15
Understanding ELLIOT WAVES ---a technical B waveJust wanted to share this part of the chart because it was pretty hard to see live — it formed on a very low timeframe. I’m posting it on the 15-minute since TradingView won’t let me publish anything lower, but I’ll drop it down and link the lower timeframes below so you can see more of the detail. This is today’s Ethereum move. I was waiting for the bullish breakout and got in right at the low because I spotted the B wave setup forming. The B wave is the cipher — it tells you where you are within the Elliott structure if you know how to read it. In this case, the B wave formed a big expanding triangle. You could also map it as an internal ABC inside the B itself. It was a very technical structure, so I wanted to post it to show how a complex B wave can look in real time. Recognizing these patterns helps a lot when you’re tracking the transition from correction to impulse. FOLLOW AND COMMENT FOR MORE ELLIOT WAVE EXAMPLES AND LESSONS
INDEX:BTCUSDEducation
by AtticusFreeman
Educational BTC Analysis: Decoding BTC's Wave (C) DownHello Friends, Welcome to RK_Chaarts. Today we are going to understand Elliott Wave Teaching Points from the BTCUSD Daily Chart, This chart sequence perfectly illustrates the difference between motive (impulse) and corrective waves, as well as the important structures and rules of a larger correction. 1. The Structure of a Corrective Pattern (A-B-C)The Big Picture: The overall movement, labeled Intermediate Wave (A), (B), and (C) (Blue), is a three-wave corrective pattern. This type of pattern moves against the trend of one larger degree (which have been an uptrend). The three-wave (A-B-C) structure is the classic way markets move in a counter-trend. Wave (A): The initial counter-trend move.Wave (B): A bounce or retracement that moves back in the direction of the previous trend, but fails to reach the start of Wave (A).Wave (C): The final, and often most powerful, leg of the correction, which is designed to complete the retracement. This wave is always structured as a five-wave impulse. 2. The Rule of Subdivisions: Corrective Waves are Internally Motive, Wave (C) is an Impulse: The report states that Intermediate Wave (C) is expected to unfold as a five-wave impulse sequence of a Minor Degree (Red) (Minor Wave 1, 2, 3, 4, 5). Learning Point: This highlights a fundamental Elliott Wave rule: the C-wave of an A-B-C correction is a motive wave (it has a five-wave internal structure) because its purpose is to create strong directional progress and complete the larger correction. This is commonly known as a Zigzag correction (which has a 5-3-5 internal count for A-B-C). 3. Identifying the Strongest Move (Wave 3) The Current Phase: The market is currently in Minor Wave 3 (Red) downwards. Learning Point: In Elliott Wave theory, Wave 3 is typically the longest and never the shortest of the three motive waves (Waves 1, 3, and 5). This means the analysis anticipates the current move to be the most directional, high-momentum, and volatile part of the entire Intermediate Wave (C) correction. This is the "sweet spot" for trend traders. 4. The Principle of Alternation (Predicting Wave 4) Upcoming Wave: The analysis projects a shallow Minor Wave 4 (Red) rebound. Learning Point: While the chart doesn't show Wave 4 yet, this prediction is often guided by the Principle of Alternation. If the preceding corrective wave (Minor Wave 2) was a sharp, deep correction, the next corrective wave of the same degree (Minor Wave 4) is expected to be a sideways, shallow, or complex correction (like a flat or triangle). The prediction of a "shallow" wave 4 suggests Minor Wave 2 was likely a deeper, sharper retracement. 5. The Critical Invalidation Rule The Invalidation Level: The report sets the critical invalidation price at 74,223, which represents the low or starting point of wave ((1)). Learning Point: Wave ((2)) can never retrace more than 100% of Wave ((1)). By identifying a specific price level, we can assume that our study says price should not broke below that particular level, it provides traders with clear risk management parameters. I. Current Wave Count Status The analysis indicates that the previous upward corrective structure, designated as Intermediate Degree Wave (A) and Wave (B) (Blue), is complete. The market is now engaged in a significant downward movement within the larger Intermediate Degree Wave (C) (Blue). This Intermediate Wave (C) is expected to unfold as a five-wave impulse sequence of a Minor Degree (Red) to the downside, fulfilling the final leg of the overall corrective cycle. II. Detailed Downward Projection The Minor Degree five-wave structure within Intermediate Wave (C) is currently positioned as follows: Minor Wave 1 and Minor Wave 2 (Red): These waves are identified as complete. Current Phase: The market is now unfolding Minor Wave 3 (Red) downwards, indicating the strongest portion of the bearish move is in progress. Anticipated Completion: Following the completion of Minor Wave 3, the analysis projects a shallow Minor Wave 4 (Red) rebound, followed by the final impulse move, Minor Wave 5 (Red), to complete the entire Intermediate Wave (C) correction. The ultimate completion of Intermediate Wave (C) will signal the end of the larger-degree correction (labeled as a corrective wave (2)). III. Critical Invalidation Level The integrity of this bearish wave count is contingent upon the price action respecting a critical support level. Invalidation Price: 74,223 Significance: This price point represents the extreme low or starting point of wave ((1)), so Wave ((2)) correction Should not breach this level as per wave principles, if it makes lower low below 74,223 on the lower side, the current Elliott Wave analysis would be invalidated, requiring a revision of the entire wave structure and market outlook. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Chaarts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Chaarts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
BITSTAMP:BTCUSDEducation
by RK_Chaarts
Understanding Elliott Wave Analysis: A Daily Outlook ExampleHello Friends, Welcome to RK_Chaarts! Today we're going to explore Elliott Wave Analysis using a daily outlook example of Lloyds Enterprises Ltd Chart. Please note that this is for educational purposes only. Important Disclaimer: - This analysis is not trading advice. - I am not a SEBI-registered analyst. - Please consult your financial advisor before trading or investing. Understanding Elliott Wave Analysis In this educational guide, we'll walk through a daily outlook analysis using Elliott Wave theory. Our goal is to identify potential price movements and understand the underlying wave structure. Current Market Analysis We are currently analyzing a daily chart, and our analysis suggests: - We have completed wave (4) of Intermediate degree (blue). - We assume an upside movement will unfold, forming wave (5) of Intermediate degree (blue). - This wave (5) has the potential to reach new all-time highs near 90-92+. Risk-Reward Ratio Our analysis indicates a very decent risk-reward ratio. This means that the potential upside movement is substantial compared to the potential downside risk. Trade Setup To validate our trade setup, we are watching for a break above the upper trendline. Once this break occurs, we can consider using the invalidation level marked at the last swing low of 67. Key Takeaways: 1. Elliott Wave Structure: Understand the current wave structure, including the completed wave (4) and the anticipated wave (5). 2. Potential Price Movement: Recognize the potential for wave (5) to reach new all-time highs. 3. Risk-Reward Ratio: Acknowledge the decent risk-reward ratio, which supports the trade setup. 4. Trade Validation: Wait for a break above the upper trendline to validate the trade setup. By applying Elliott Wave analysis and understanding the underlying wave structure, traders can make more informed decisions and identify potential trading opportunities. Remember: Most investors treat trading as a hobby because they have a full-time job doing something else. However, if you treat trading like a business, it will pay you like a business. If you treat it like a hobby, hobbies don't pay, they cost you! Hope this post is helpful to the community! Thanks, RK Disclaimer and Risk Warning: The analysis and discussion provided on in.tradingview.com are intended for educational purposes only and should not be relied upon for trading decisions. RK_Chaarts is not an investment adviser, and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Chaarts does not share in your profits and will not take responsibility for any losses you may incur. So please consult your financial advisor before trading or investing.
NSE:LLOYDSENTEducation
by RK_Chaarts
3
Using simple volume for added confluence in Elliott Wave Theory!Shown on the chart is 2 of the ways you can use the highest volume spikes on the chart to find out where you are in the wave count. Easiest way is to find the highest volume with the steepest slope of trend to label as your third wave. Same concept whether its bearish bars printing or bullish bars. The highest volume shown is actually part of the retracement, albeit in one of the actionary waves (moving with trend), alot of buying happened at the termination of the wave C of the zig zag shown in green. Perfect scenario to rake in buy orders from retail then dump on them to finish out the WXY pattern. This is just 2 of the many scenarios in which you can find help from the volume oscillator to give you a directional bias in Elliott Waves. Happy Trading
Education
by Fractical
1
Understanding Elliott Wave Theory with BTC/USD If you’ve ever stared at a Bitcoin chart and thought, “ This looks like chaos ”, Ralph Nelson Elliott might disagree with you. Back in the 1930s, Elliott proposed that markets aren’t just random squiggles — they actually move in recognizable rhythms. This became known as Elliott Wave Theory . So, what is Elliott Wave Theory? In the simplest terms, it’s the idea that market psychology unfolds in waves: five steps forward, three steps back, repeat. Not every chart follows it perfectly, but when you see it play out, it feels like spotting order in the middle of crypto madness. ⚠️ Before we dive in: remember, no single tool or pattern works alone. Elliott wave trading is most useful when combined with other methods. The Elliott Wave Principle At the heart of the Elliott Wave principle are two phases: Impulse Waves (5 waves) : Markets advance in five moves — three with the trend, two counter-trend. This is when optimism snowballs. Corrective Waves (3 waves) : The market cools off in three moves. Usually messy, choppy, and fueled by doubt. Put them together, and you get a “5-3“ structure that repeats at different scales. That’s what gives Elliott Wave its fractal character. Again, don’t treat this as a crystal ball. Elliott Wave Theory rules are guidelines, not guarantees. Real-world Bitcoin charts bend, stretch, and sometimes ignore them altogether. Elliott Wave Theory Explained with BTC Let’s use an example: Bitcoin’s rally from early 2025 till now . This downturn marked the first step in a broader consolidation, signaling that momentum was beginning to fade. The corrective sequence unfolded in a classic A-B-C structure. ❗This three-part move effectively reset the market, washing out excess leverage and preparing the ground for the next impulsive cycle. From that low, Bitcoin launched into a textbook five-wave impulsive rally. This initial leg down, labeled wave (a), suggested that a larger corrective phase was now underway, replacing the bullish momentum with profit-taking and distribution. That’s a textbook case of Bitcoin Elliott wave analysis . But notice: it wasn’t clean. Some traders counted the waves differently. Some saw extensions or truncations. That’s the thing with Elliott — interpretation matters as much as the rules. Elliott Wave Theory Rules and Flexibility The classic Elliott wave rules say things like: Wave 2 can’t retrace more than 100% of Wave 1. Wave 3 is never the shortest impulse wave. Wave 4 can’t overlap with Wave 1 in most cases. But in practice, Bitcoin often blurs these lines. Extreme volatility, liquidation cascades, and macro shocks can distort wave counts. That’s why even seasoned analysts will say, “This is my Elliott count,” not the Elliott count. The takeaway? Think of Elliott as a lens, not a lawbook. Tools That Pair with Elliott Many traders use the MT5 Elliott Wave Indicator or TradingView drawing tools to sketch their wave counts. Despite the waves becoming far more meaningful when tied to other signals: Fibonacci Retracements: For example, watching how corrections line up with golden pocket levels. Momentum Oscillators: That confirm or contradict the wave structure. Macro Sentiment: Shifts that often align with corrective or impulsive phases. Elliott Wave Theory trading doesn’t exist in a vacuum. Used alone, it’s like trying to predict the weather with just cloud shapes. Why Beginners Should Care If you’re new, you might be asking: “ Okay, but why bother with this at all? ” The answer: Elliott Wave Theory explained the psychology behind price swings long before the existence of cryptocurrency. It captures the human emotions behind markets — fear, greed, doubt, euphoria. And Bitcoin, perhaps more than any other asset, runs on psychology. So whether you’re sketching waves, testing them on the Bitcoin Elliott wave chart , or just trying to understand why BTC always seems to surge then collapse, this framework helps put the chaos into context. Final Thoughts 🌊 What is Elliott Wave Theory in trading? It’s not a magic formula. It’s a structured way of looking at markets through recurring patterns of optimism and pessimism. And just like with every other tool we’ve discussed, it’s not about using it alone. The best insights come when you combine the Elliott Wave principle with other indicators: Fibonacci, moving averages, and even plain old support and resistance. So the next time someone posts a “ wave count ” on a Bitcoin Elliott Wave analysis, don’t take it as gospel. Treat it as one possible map of where we are in the cycle. Because in trading, it’s never about certainty. It’s about perspective. This analysis is performed on historical data, does not relate to current market conditions, is for educational purposes only, and is not a trading recommendation.
WHITEBIT:BTCUSDEducation
by WhiteBIT
6
Elliot Wave📚 Elliott Wave Trading Strategy — Education Framework 1. Origins & Philosophy Ralph Nelson Elliott (1920s–1930s): Found that markets, while seeming chaotic, often move in repeating wave structures. Core Belief: Market psychology cycles between optimism and pessimism in a fractal pattern. Purpose: Provides a roadmap of where the market could be within a cycle (not a certainty). 2. The Two Types of Waves Impulse (Motive) Waves (1–5): Move in the direction of the main trend. Rules: Wave 2 never retraces >100% of Wave 1. Wave 3 is never the shortest. Wave 4 doesn’t overlap Wave 1. Net result = trend continuation. Corrective Waves (A–B–C): Move against the main trend. Three-wave structure: down (A), up (B), down (C) in a bull market. Typically retraces a Fibonacci % of the prior impulse. 3. Key Components Fractals: Small waves make up bigger ones, across timeframes. Degrees of Waves: From Grand Supercycle (multi-century) to Subminuette (intraday). Fibonacci Ratios: Common retracement levels (38.2%, 50%, 61.8%) and extensions (161.8%) guide targets. 4. Practical Trading Strategy Elliott Wave by itself is subjective. The edge comes when combined with confirming indicators. Example Workflow for Swing Trading Identify Trend Direction: Use 50-day/200-day MA, Ichimoku, or ADX. Wave Counting: Label impulse waves 1–5. Wait for a corrective wave A–B–C. Entry: Many Enter end of Wave 2 or Wave 4 (buy dips in uptrend). Try entering a wave earlier, so that you lock in better Risk to Reward. Use momentum oscillators (RSI/Stochastics) to confirm end of correction. Exit/Profit Target: Project Wave 3 or 5 using Fibonacci extensions (often 161.8% of Wave 1). Stop Loss: Below Wave 1 start (if long). Above Wave 1 start (if short in a bear sequence). 5. Who Uses Elliott Wave? Day Traders / Swing Traders: To catch impulse waves. Long-term Investors: To avoid topping markets (useful in bubbles). Cross-Market Traders: Applies in stocks, forex, commodities, crypto. 6. Advantages ✅ Provides forward-looking framework (not just lagging). ✅ Works across asset classes and timeframes. ✅ Helps identify where we are in a market cycle. ✅ Blends well with Fibonacci, RSI, and trend filters. 7. Disadvantages ❌ Highly subjective (two traders may count waves differently). ❌ No guarantee — probabilities, not certainties. ❌ Developed in the 1930s, critics argue it hasn’t adapted well to algorithmic/modern markets. 8. Famous Elliott Wave Calls Dow 2002–03 Crash: Prechter predicted drop from 11,000 → 7,000. Gold 2011 Peak: Predicted ~$1,900 top. Bitcoin 2017: Analysts called $20K top → $3K. 9. Common Mistakes Forcing wave counts (bias confirmation). Ignoring other indicators. Trading every wave → instead, focus on the big impulses. No patience (wave structures can take weeks or months). ✅ Summary Strategy (Simple Version) Use MAs or trendlines → determine main trend. Count impulse waves → focus on Wave 3 and Wave 5 (strongest). Wait for corrective pullback (Wave 2 or 4). Enter with oscillator confirmation + Fibonacci retracement. Exit at Fibonacci extension or trend exhaustion.
Education
by GabrielAmadeusLau
Let's learn & Apply Elliott Wave Rules on chart: BTCUSD BitcoinHello Friends, Welcome to RK_Chaarts, Friends, Today we are going to learn 3 Rules of the Elliott Wave theory, there are three principles and some patterns. Impulses move in a 1-2-3-4-5 pattern, either as an impulse or a motive wave. However, within impulses, there are three rules: Rule No 1: Wave 2 will never retrace more than 100% of Wave 1. Rule No 2: Wave 3 will never be the shortest among Waves 1, 3, and 5; it can be the largest, but never the smallest. Rule No 3: Wave 4 cannot overlap Wave 1, except in diagonals or triangles; in impulses, it cannot overlap. We've checked these three rules and marked them with separate tick marks on the chart with different colors, making them clearly visible. You can review the chart and verify these rules yourself, learning how wave principles are applied and checked. We've explained all this through a drawing on the chart, so we won't elaborate further here. Moving forward, let's analyze what the wave theory suggests about the current market trend. This entire analysis is shared for Educational purposes only. I hope you'll consider this educational post as a learning resource, Definitely, I encourage you to review the chart as an image or picture to better understand the concepts we've worked hard to explain. Our effort will be successful if you gain a deeper understanding and learn something new from this post. If you find this helpful and informative, our hard work will have paid off. Please keep this in mind as you review the material. Now let's explore how wave counts within wave counts, or lower degrees within higher degrees, unfold through complete wave theory patterns and following theory Rules all the times. Let's take a closer look at the Bitcoin chart we've analyzed using Elliott Waves. From this perspective, it's clear that the Intermediate Degree Wave (2) concluded around June 23rd. After this, we observe that the internal wave counts of the lower degree, specifically Wave 1-2-3 (in red) have completed their cycle of Minor degree. Furthermore, Red Wave 4 of same Minor degree has been moving sideways, characterized by a downward trend. Notably, the fall of Red Wave 4 is classified as a Minor Degree movement. Interestingly, this downward movement appears to have terminated in an even lower degree, namely the Minute Degree, which we've marked in black as ((w))-((x))-((y))-((xx))-((z)) that means Wave 4 of Minor degree (in Red) is complete. Given that Red Wave 4 Minor has reached its conclusion, it's highly plausible that Wave 5 has initiated. This development suggests that Bitcoin is poised to make a significant move. Moving on to the analysis, we observe that: - Rule 1: Wave 2 has not retraced more than 100% of Wave 1, so this rule is intact. - Rule 2: Wave 3 is not the shortest among Waves 1, 3, and 5, so this rule is also valid. - Rule 3: Wave 4 does not overlap Wave 1, so this rule is also satisfied. Bitcoin is all set to shake things up! We eagerly anticipate further rallies in the market. This post is shared purely for educational purpose & it’s Not a trading advice. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Chaarts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Chaarts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
BITSTAMP:BTCUSDEducation
by RK_Chaarts
39
Impact on the Dollar and Forex — Artavion AnalyticsThe development of central bank digital currencies (CBDCs) — especially the digital yuan (e-CNY) — is becoming a key factor in transforming global currency flows. While the US dollar still dominates, the architecture of global liquidity is beginning to shift. At Artavion, we see the e-CNY not just as a technological experiment but as a tool of China’s currency policy. Its goal is to strengthen the yuan’s role in international settlements and reduce dependence on the dollar, particularly in developing regions. Why the Digital Yuan Matters The e-CNY is already being used in China for retail payments and is being tested in cross-border transactions (e.g., in the mBridge project with the UAE and Thailand). This enables the creation of alternative payment systems not tied to SWIFT. If the digital yuan gains broader acceptance, especially for commodity and energy settlements, its role in forex will grow, potentially weakening the dollar’s monopoly in certain regions. CBDCs and Forex Structure CBDCs won’t displace the dollar in the near term, but they are already influencing the structure of currency trading: New currency pairs are emerging, especially in Asia; Transactions are becoming faster and cheaper, particularly in the B2B segment; Market participants are adjusting strategies to real-time settlements and the potential programmability of currencies. Risks and Limitations Privacy: CBDCs are under full state control; Fragmentation: There is no unified technical standard across different countries’ CBDCs; Geopolitics: The rise of the e-CNY could intensify currency competition with the dollar. Artavion’s Conclusion The digital yuan will not replace the dollar, but it is creating an alternative — especially in regions seeking autonomy from Western financial infrastructure. For traders and investors, this means reassessing currency risks and exploring new opportunities in decentralized settlement channels.
NASDAQ:AAPLEducation
by CryptoLifeone
Elliott Wave Principles: A Study on US Dollar IndexHello friends, today we'll attempt to analyze the (DXY) US Dollar Index chart using Elliott Wave theory. Let's explore the possible Elliott Wave counts with wave Principles (Rules). We've used the daily time frame chart here, which suggests that the primary cycle degree in Black weekly wave ((A)) and ((B)) waves have already occurred. Currently, wave ((C)) is in progress. Within wave ((C)) in Black which are Weekly counts, Subdivisions are on daily time frame, showing Intermediate degree in blue wave (1) & (2) are finished and (3) is near to completion. Post wave (3), we can expect wave (4) up in Blue and then wave (5) down in Blue, marking the end of wave ((C)) in Black. Additionally, within blue wave (3) Intermediate degree, we should see 5 subdivisions in red of Minor degree, which is clearly showing that waves 1 & 2 are done and now we are near to completion of wave 3 in Red. followed by waves 4 and 5, which will complete blue wave (3). Key Points to Learn: When applying Elliott Wave theory, it's essential to follow specific rules and principles. Here are three crucial ones: 1. Wave 2 Retracement Rule: Wave two will never retrace more than 100% of wave one. 2. Wave 3 Length Rule: Wave three will never be the shortest among waves 1, 3, and 5. It may be the largest most of the time, but never the shortest. 3. Wave 4 Overlap Rule: Wave four will never enter into the territory of wave one, meaning wave four will not overlap wave one, except in cases of diagonals or triangles. Invalidation level is a level which is decided based on these Elliott wave Principles only, Once its triggered, then counts are Invalidated so we have to reassess the chart study and other possible counts are to be plotted The entire wave count is clearly visible on the chart, and this is just one possible scenario. Please note that Elliott Wave theory involves multiple possibilities and uncertainties. The analysis we've presented focuses on one particular scenario that seems potentially possible. However, it's essential to keep in mind that Elliott Wave counts can have multiple possibilities. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
TVC:DXYEducation
by RK_Chaarts
Dogecoin Daily Chart Analysis: A Fresh Start Ahead ?Hello friends, let's analyze Dogecoin, a cryptocurrency, from an Elliott Wave perspective. This study uses Elliott Wave theory and structures, involving multiple possibilities. The analysis focuses on one potential scenario and is for educational purposes only, not trading advice. We're observing the daily chart, and it appears we're nearing the end of Wave II, a correction. The red cycle degree Wave I ended around 2024 December's peak. Currently, we're nearing the end of red Wave II, which consists of black ((W)), ((X)), and ((Y)) waves. Black ((W)) and ((X)) are complete, and black ((Y)) is nearing its end. Within black ((Y)), we have Intermediate degree blue (W), (X), and (Y) waves. Blue (W) and (X) are complete, and blue (Y) is nearing its end. Inside blue (Y), red A and B are complete, and red C is nearing its end. Once red C completes, blue (Y) will end, Once blue (Y) completes, means black ((W)) will end that means higher degree cycle wave II in red will end. If our view remains correct, the invalidation level for this Elliott Wave count is 0.04913. If this level holds and doesn't touch below it, we can expect a significant reversal to unfold wave III towards new highs. This is an educational analysis, and I hope you've learned something by observing the chart and its texture. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
Education
by RK_Chaarts
4
Using Fibonacci/Measured Moves To Understand Price TargetThis video is really an answer to a question from a subscriber. Can the SPY/QQQ move downward to touch COVID levels (pre-COVID High or COVID Low). The answer is YES, it could move down far enough to touch the pre-COVID highs or COVID lows, but that would represent a very big BREAKDOWN of Fibonacci/ElliotWave price structure. In other words, a breakdown of that magnitude would mean the markets have moved into a decidedly BEARISH trend and have broken the opportunity to potentially move substantially higher in 2025-2026 and beyond (at least for a while). Price structure if very important to understand. Measured moves happen all the time. They are part of Fibonacci Price Theory, Elliot Wave, and many of my proprietary price patterns. Think of Measured Moves like waves on a beach. There are bigger waves, middle waves, smaller waves, and minute waves. They are all waves. But their size, magnitude, strength vary. That is kind of what we are trying to measure using Fibonacci and Measured Move structures. Watch this video. Tell me if you can see how these Measured Moves work and how to apply Fibonacci structure to them. This is really the BASICS of price structure. Get Some. #trading #research #investing #tradingalgos #tradingsignals #cycles #fibonacci #elliotwave #modelingsystems #stocks #bitcoin #btcusd #cryptos #spy #gold #nq #investing #trading #spytrading #spymarket #tradingmarket #stockmarket #silver
NASDAQ:QQQEducation
by BradMatheny
1
Calibrating Trading Indicators for Different MarketsCalibrating Trading Indicators for Different Markets: A Beginner's Guide (Simple Steps to Adjust RSI , MACD , and Other Tools for Better Results) Key Idea : Just like you'd tune a guitar differently for rock vs. classical music, trading tools like RSI or MACD need adjustments depending on what you're trading (stocks, crypto, forex) and how it moves. This guide shows you how to tweak these tools using price swings (pivot points) to make them work better for your specific asset. --- Why "One Size Fits All" Doesn't Work Most traders use default settings for indicators (like RSI's 14-day period). But these defaults were created for "average " markets. Real markets aren't average! Example: - Crypto ( CME:BTC1! ) : Super volatile → Needs faster, more sensitive indicators. - Blue-Chip Stocks ( NASDAQ:AAPL ) : Less wild swings → Needs slower, smoother indicators. If you use the same RSI settings for both, you'll get bad signals. Calibration fixes this. --- The Pivot Point Method for Calibration One effective approach to calibration is measuring the natural rhythm of price swings between high and low points. Here's how to do it step by step: Step 1: Find Pivot Points on Your Chart Pivot points are like "price turning points." Use TradingView's ZigZag indicator (or draw them manually) to spot these swings. How to Add ZigZag on TradingView : 1. Open your chart. 2. Click "Indicators" → Search " ZigZag " → Select it. 3. Adjust settings (defaults work fine for starters). The ZigZag will draw lines between significant highs (peaks) and lows (valleys). --- Step 2: Measure the "Rhythm" of the Market Count the bars (candles) between pivot points to find the market's natural cycle. Example : - If Bitcoin swings from peak to peak every 14 bars on average, its "cycle" is 14 bars. - If Apple does this every 16 bars, its cycle is 16 bars. In the picture above, we used the Williams Fractal to identify pivots. Formula for Indicator Settings : - RSI Period = Half the average cycle → If cycle = 16 bars → RSI = 8 days. - MACD Settings : Fast EMA = ¼ cycle, Slow EMA = ½ cycle → Cycle = 16 → Fast EMA = 4, Slow EMA = 8 --- Step 3: Test Your Calibrated Indicators Backtest on TradingView : 1. Add your indicator (e.g., RSI) with the new settings. 2. Use the Strategy Tester (click "Add to Chart" → " RSI Strategy ") to see if signals improve. Look For : - Fewer false signals (e.g., RSI saying "oversold" too early). - Clearer trends (MACD crossovers matching price moves). --- Calibrating Popular Indicators (Simple Rules) 1. RSI (Relative Strength Index) - Default : 14 days. - Calibrated : Half the average cycle length. - Example : Cycle = 16 bars → RSI = 8 days. Why It Works : Shorter RSI reacts faster to volatile markets (like crypto). 2. MACD - Default : 12, 26, 9. - Calibrated : - Fast EMA = ¼ of cycle. - Slow EMA = ½ of cycle. - Signal Line = ⅙ of cycle. - Example : Cycle = 20 → Fast = 5, Slow = 10, Signal = 3. Why It Works : Matches the asset's natural momentum shifts. 3. Williams %R - Default : 14 days. - Calibrated : Same as RSI (half the cycle). --- How to Avoid Common Mistakes Mistake 1 : Overfitting (Making It Too Perfect for the Past) - Problem : If you calibrate too precisely to old data, it might fail in the future. - Fix : Test on 2 types of data: 1. Training Data : First 70% of your chart (to calibrate). 2. Testing Data : Last 30% (to check if it still works). Mistake 2 : Ignoring Market Changes - Problem : What works today might not work next month. - Fix : Recheck your settings every 3 months or after big news (e.g., Fed rate hikes). --- Free Tools to Help (No Coding Needed) 1. TradingView's "Auto-Detect Cycle" Scripts Search for indicators like "Cycle", "RSI Adaptive" or " Rainbow Adaptive RSI " in TradingView's public library. These automatically calculate cycle lengths (Not tested). 2. Adaptive MACD/RSI Indicators Try pre-built adaptive indicators like: - Adaptive MACD : Adjusts itself based on volatility. - Dynamic Pivot : Uses pivots to set stop-loss and take-profit levels. --- Building a Simple Pivot Calibration System Basic ZigZag Calibrator Method : 1. Add ZigZag to your chart. 2. Manually count the bars between 5 recent swings. 3. Calculate the average → Divide by 2 → Use that number for your RSI/MACD. Example : - Swings: 12, 14, 16, 10, 8 bars → Average = 12. - Calibrated RSI = 6 days. --- Why This Works (Without the Math) Markets move in waves. By matching your indicator's speed to the wave length, you "surf" the trend instead of fighting it. Research shows adaptive methods like this beat default settings. The Science Behind It When you calibrate to an instrument's natural rhythm: - Oscillators (RSI, %R) catch extremes at the right time - Trend indicators (MACD) signal changes faster - Volatility bands (Bollinger Bands) expand and contract appropriately --- A Step Further: Multi-Timeframe Calibration For even better results, calibrate across timeframes: 1. Calculate cycles on daily charts for swing trading 2. Calculate cycles on 4-hour charts for day trading 3. Use both calibrated indicators together for confirmation --- Final Tips for Beginners 1. Start Small : Calibrate one indicator (like RSI) first. 2. Use Free Tools : TradingView has thousands of free scripts to automate calculations. 3. Keep Records : Document what settings work for which assets. 4. Be Patient : Finding the right calibration takes time, but the results are worth it. Calibration isn't about being perfect—it's about making your tools work better for specific markets . Happy trading!
NASDAQ:AAPLEducation
by TradeVizion
3
A Closer Look at Bitcoin's Elliot Wave PatternHello friends, today we'll attempt to analyze the Bitcoin chart using Elliot Waves. Our approach will involve using Elliot Wave theory and structures, which involve multiple possibilities. The analysis we present here focuses on one potential scenario that seems possible to us. Please note that this information is for educational purposes only and should not be considered trading advice or investment tips. There's a risk of being completely wrong, so never trade based solely on this post. We're not responsible for any profits or losses. Individuals should consult a financial advisor before making any trading or investment decisions. Now, let's discuss the Bitcoin chart. On the daily chart, we can see that a black primary degree wave has completed its ((4th)) wave, and the ((5th)) wave has started. Within the fifth wave, an intermediate degree wave is unfolding, which will have its own set of waves (1), (2), (3), (4), (5). The primary black degree wave five will be complete once the intermediate degree wave is finished. We've drawn accounts on the chart, illustrating the entire structure, including the nearest invalidation level at around $76,666 and the real invalidation level below $50,000. I hope this analysis based on Elliot Wave theory has helped you understand the chart better and learn something new. Please keep in mind that this is for educational purposes only. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
BITSTAMP:BTCUSDEducation
by RK_Chaarts
22
How to Trade Ending Diagonal: EURUSDOne of my favorite EW patterns: Ending Diagonal It usually appears in wave C or 5, we have wave C It consists of five waves and each of them are three waves All looks good as wave 5 is over wave 3 and Ending diagonal might be completed as EWO oscillator already shows Bearish Divergence between wave 3 and 5 This educational post to show trade setup on this pattern The bottom of wave b in wave 5 is a breakdown trigger (blue) as it means wave 5 is over Confirmation is on breakdown of wave 4 (orange) Target is at the start of the Ending Diagonal (green) Bonus track: One could consider sell on 61.8% Fib retracement as we see the first impulse down and now we watch this two-legged pullback.
Education
by aibek
Bitcoin Seasonality - Best Month (October) and Best Day (Monday)It's very important for every Bitcoin trader to know its seasonality because this will significantly increase the probability of successful trades. I have been trading Bitcoin for almost 10 years, and I successfully use seasonality patterns to predict Bitcoin price movements. For example, you don't want to go long on Bitcoin during August or September; that's probably a very bad idea. The biggest market crashes usually happen in September. But you definitely want to go long in October or April, as these months are the most promising. Knowledge of these patterns will give you an advantage over standard retail traders. Every trade matters. Average return by Month (%) January: +5.1% February: +12.1% March: +4.8% April: ˇ+18.7% May: +14.2% June: +4.4% July: +6.1% August: -3.1% September: -8.4% October: +22.2% November: +17.9% December: +7.3% Average return by Weekday (%) Monday: +0.63% Tuesday: +0.18% Wednesday: +0.54% Thursday: +0.40% Friday: +0.37% Saturday: +0.45% Sunday: +0.10% Currently I am bullish on Bitcoin as the price is in an uptrend and the bear market is not confirmed; I expect Bitcoin to hit 115k probably at the end of February. What I also expect is an alt season - alt season is starting right now! So it's time to buy some altcoins. Ethereum should outperform BTC in the next weeks as well. Write a comment with your altcoin, and I will make an analysis for you in response. Also, please hit boost and follow for more ideas. Trading is not hard if you have a good coach! This is not a trade setup, as there is no stop-loss or profit target. I share my trades privately. Thank you, and I wish you successful trades!
Education
by Xanrox
41