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Elliott Wave

$SLP - Symmetriacal triangle tradingA Simple plan for a self defeating symmetrical triangle. If your are not sure as to which side its going to break to, you can create a dual trading plan. For instance if c is penetrated then a short will be triggered, conversely a long position will be opened when d hits. This is one ewt you can never loose in 1) its easy to identify and 2) it gives you the opportunity to go in either direction Scenario 1: wave marked pink This implies that we have a bearish setup and hence expect a breakdown. Since we know that E can't go above D, a long position is placed slightly above D Scenario 2: wave in brackets Conversely, E can't go below (D) and an ideal position for a short would be just below (D) This setup prepares you for anything the market direction
Education
by initmx
Two Types of Elliot Wave CorrectionsWhen it comes to Elliot Wave Theory, we know of two different correction patterns . On the left you can see the classic correction, which is less common in real market situations. On the other hand, the flat correction (right) occurs more frequently in the market, since modern price action is often characterized by fakeouts . In this case, a fakeout looks like a wave B making a new high above wave A. In most cases, traders would open a trade here due to a structural break, which then runs against them (bull or bear trap). In the following table you can see how the respective correction patterns differ from each other and what you need to pay attention to. It is very important that you learn how to use Fibonacci tools correctly so that you can calculate the wavelength properly. Maybe I'll do a separate educational post on the proper use of those tools in future. Thank you very much for your attention, Your RT
COINBASE:BTCUSDEducation
by RT_Trading_
9
Elliott Waves. Possibility VS Certainty !Elliott wave practitioners are sometime subject of criticism because of their apparent mistakes !. An important point that many people may not be aware of is that " Elliott waves analysis is about possibilities and probability of each possibility not about certainties ! ". In fact, there is no false or true analysis in the world of Elliott waves (if a supposed scenario governs all rules). It is about choosing what you think as the most probable scenario but keeping in mind which conditions confirm or invalidate your analysis. If a most probable scenario fails , an Elliott practitioner immediately thinks about second most probable one ! and so on. TSLA at current price and wave form is a clear and typical example of different scenarios possibility. We will investigate those possibilities in the following paragraphs but before that it is worth to mention that general trend of TSLA is up and as I previously published one more leg up is still ahead in broader view . TSLA showed a decline from ATH to 886.12 with an abc zigzag form hitting a strong proposed support at confluence of former ATH, 50 % Fibo retracement and base of down going channel. ( See related idea for more details). It then made a strong bounce back but never reached a new ATH and finished it's move at 1208 just slightly above 1201.95 minor high with another 3 leg up !. This setup offers several possible scenarios. I could predict 13 of them . Please note that possible scenarios would be considerably different if TSLA made a new ATH or showed a 5 leg up move !. Different possibilities!. We had another decline from 1208 to 980 and then a bounce back to current price. At this current position TSLA may choose different paths. Be patient . We will make a conclusion at the end of idea !. Followings are the possible scenarios as shown on the chart. We have chart of TSLA on the left side and possible scenarios on the right. Please note that right side chart is just a schematic drawing so I kindly ask you to disregard dates and prices on the right side chart: 1. Double Zigzag or Double three Correction : In this scenario , The move up from 886.12 to 1208 is a wave X which connects two correcting forms. Next correcting pattern can be either a flat or another zigzag. Actually we have 2 slightly different scenarios in this part. Difference is second part flat correction ( Double three) price goes just slightly below the 886.12 low but in double zigzag goes much lower. Forms are the same and price targets are different. 2. Double Three : Triangles in the second part of corrections are more common in complex corrections. In this case , a triangle is going to form after decline from 1208 to 980. and price will never go below the 886.12 ( except expanding triangles which is not common). Triangles can have several forms themselves : Contracting, Barrier and expanding. Here we just showed a contracting triangle in second part. We have 3 somehow similar scenarios here with just 1 shown . 3. Triple Three: We may have a boring and exhausting correction continuation which is triple three. I showed on more common triple three correction on the chart with first part being a zigzag, second part being a flat and third part being a contracting triangles. Considering the third part can be a flat and even zigzag (which is not a usual one) and triangles different forms we reach to 5 possible similar scenarios here with only 1 shown. 4. Terminal wave 1 as beginning of the new impulse after end of correction at support: Impulsive waves are always 5 wave in classic Elliott waves however , there may be 3 waves wave 1 in harmonic Elliott. It may be the case for TSLA and a move up from 886.12 to 1208 can be labeled as wave 1. in this case we are in wave 2 and another leg down is expected before making a new ATH. If you doubt about occurrence of such wave 1 see SHOP stock from 26 March 2021 to 13 may 2021. We can find many other examples in the market. 5. Antic cycle wave 1 and 2 and end of correction at support : Normally impulsive waves are 5 leg and corrective waves are 3 to form a wave cycle. Sometimes wave forms show an anti cycle with 3 legs in the direction of main trend and 5 waves in counter trends. In this scenario TSLA has completed wave 1 and 2 and we are in up going wave 3. 6. Very rare bearish scenario with 3 waves truncated wave 5 : First of all, this scenario is very rare and I give very very little chance to it at the moment but I certainly keep it in mind as a possible one !. Wave fives sometime show 3 legs instead of 5. several examples can be found for example see BTC from 56206 to 68769. Truncated wave fives can not make a new ATH. Occurrence of these two together has very little chance. One may ask : So what? Are we going to be confused? What should we do now? Do we have a clear answer ? Of course we have ! Except that rare scenario, all above mentioned possibilities suggest TSLA will finally make a new ATH . They all (except the bearish case) suggest taking out 1208 high as a strong buy point therefore If we do not have TSLA shares right now we can set our buy point above 1208 and if we already have shares we can hold them to capture the profit of next up going waves. This is how an Elliott practitioner makes the final decision considering all possibilities and probabilities. This one is a complicated one in short term but sometime we have much more easier process of decision making like TSM with a clear buy point above 135.5. It is worth to note pre-requisite of all of this scenario is that TSLA has completed wave 1,2,3 and maybe 4 of larger cycle wave and will make the last wave 5. If this pre-requisite is wrong all above scenarios are wrong. For now. I am confident about the position in the larger cycle. I spent about 10 hours to prepare this 10-min read publication so I deeply hope this to be useful and show you how can one be prepared in advance for different scenarios with the help of Elliott waves. Good luck everyone and wish you all the best.
NASDAQ:TSLAEducation
by SaeedSajedi
21
Market Tutorial: Varying Degrees Investigated with ArcsHello! Well wishes to you! In this tutorial is seen varying arcs with more - or less - eccentricity. In practical trading terms, the eccentricity would be how much time the arc covers compared to how much price it covers. An arc covering one days worth of time for a set amount of price would have more eccentricity - making it more oval shaped - than an arc covering an hour worth of time for that same amount of price. In viewing charts, it can be seen that varying degrees of impulse and corrective waves arise. One way in which these waves can be viewed is by the use of arcs. First, identity the degree of impulse that is desired. Use the steepest geometric angle - typically the 8x1 - to align the axis of the impulse with. Now, use the newly generated 1x1 impulse as the axis of the arc. Next and finally, repeat this procedure for any degree of impulse desired.
BITFINEX:DOGEUSDEducation
by UnknownUnicorn27791825
Difference between ABC and WXY Elliott Corrective WavesElliott Wave Principle , developed by Ralph Nelson Elliott, proposes that the seemingly chaotic behaviour of the different financial markets isn’t actually chaotic. In fact the markets moves in predictable, repetitive cycles or waves and can be measured and forecast using Fibonacci numbers. Elliott wave predicts that the prices of the traded financial instrument will evolve in waves: five impulsive waves and three corrective waves. This educational article aims to present only the difference between ABC and WXY corrective waves and will not cover other wave paterns (triangle corrective waves , or any of the impulsive (motive) wave structures) Both ABC and WXY corrective waves are patterns made of 3 waves (swings) corrective structure and this similarity mostly confuses practitioners while labeling. The main difference between the two is in the internal subdivision of the waves (legs) Each pattern has its own rules, where ABC could be - a ZigZag patern that have 5-3-5 internal stracture - a Flat (Regular, Running or Expanded Flat) patern that have 3-3-5 internal stracture while WXY patern is made of 3-3-3 internal stracture. WXY is combination of two corrective patterns , hence often called as a double three or a double correction. Each wave W, X or Y could have almost any corrective structures (double three, triple three, zigzag, flat, triangle (wave W can’t be a triangle structure), or any complex combinations) WXY is also know as 7 swing stracture even it is made of 3-3-3 internal swings, the X-wave is considered as a connector wave because it binds two corrective waves and is counted as 1, W and Y waves are counted as 3 and hence 7 swings WXYXZ is combination of three corrective patterns, hence often called as a triple three, a triple correction or 11 swing, WXY rules applies also for WXYXZ Tips : An elliott wave practitioner in general may assume a trend continuation once an ABC correction is completed. In todays market complex corrections are more common than simple corrections, the markets are in a correction phase nearly %70-%80 of the time. Hence, once an ABC correction is completed a trend continuation failure must be considered in the trading plan and in fact, this failure is the main characteristic of the X-wave, a trend that has failed. Once X wave is completed another corrective structures is to be expected live examples (not financial advice, just experimental analysis) GOLD BTC Below is a link to Elliott Wave Oscillator study, where the "EWO with Signals" indicator helps traders to track the waves (in lower degrees). It provides insight to traders to observe when an existing wave ends and when a new one begins
Education
by dgtrd
43
FHZN - The power of elliot waves Dear subscribers, lets come together for an educational article featuring the zurich airport. SIX:FHZN We have published some articles about the Zurich Airport in the past and suspected back then a more bullish structure than this one which we are publishing now. The Zurich Airport company operates and manages the eponymous Zurich Airport in Switzerland, which is the international transportation hub for the entire country. The company has an excellent management and the government of Zurich itself holds almost 38.38% of all shares. Therefore, Zurich Airport can always rely on government support and enjoys a good reputation. In addition, the company is increasingly expanding into emerging markets and now owns Hercilio Luz Airport (FLN) in Florianopolis Brazil. For the future, it is therefore clear that the company is increasingly driving its presence abroad and expanding its business model. However, the zurich airport stock provides an excellent example to introduce traders who are not familiar with the Elliot Wave method of analysis. The stock has originally been around since 2000, but on Tradingview we only have access to the market data since the beginning of 2010, but this makes little difference to the current movement, as a huge 1-2 wave setup was also formed during the period 2000-2010. Technical explanation of the Elliot wave structure: The stock has experienced a huge price increase since 2012, which was supported based on a huge 1-2 (Orange) wave setup. From this structure, a large wave 3 was established, which additonally established a complete impulse of its own (dark green). After completing a short correction in wave 4, the stock first formed an impulse (light green) and ended the year-long bull market with a final impulse (turquoise) Since then, we have seen a very hard downward impulse, which reached its absolute peak in early 2020 due to the Corona crisis. Since the last low at just under $83, the stock has been rising again in what we categorized as a wave B (yellow). Now, a wedge has formed over the last two years, which strengthens our assumption of a corrective B wave. Finally, a breakout can be expected within the year 2022 and the stocj will correct with high probability back to 80$. Disclaimer: According to legal regulations, Mornau-Research is not a certified or legally recognized financial advisor and any transactions based on published content are at your own risk. Mornau-Research cannot be held liable for any losses whatsoever according to the legal regulations in it's country of residence. =============================================================================================================== If you have questions related to a specific stock or the Elliot Wave theory, feel free to contact us.
SIX:FHZNEducation
by Mendenmein-Capital
XAUUSD - Elliott Wave Rules & Guidelines of Wave FormationThis publication will focus on some of the rules and guidelines of wave formation in Elliot Wave theory in relation to the correctional sequences of Wave 4 and zigzags. Whilst Elliott Wave rules are requirements and form the basis of counting waves, understanding the guidelines of wave formation is as crucial in identifying wave structure and the likely scenarios that could unfold. Guidelines are not the same as hard and fast rules that cannot be broken, they are not always observed. However, they have proven to be very reliable over time. Alternation guidelines within an impulse dictate that; Wave 4 has a tendency to differentiate both in depth and form, from the previous Wave 2 of the same degree. Often trending sideways for the final Wave 5 to breakout from impulsively. Whilst a more common formation for Wave 4, the simple sideways correction (flat structure) formed as a Wave 2 between from July 2016- August 2018. Keeping in mind the alternation guideline of wave formation highlighted above, the potential for Wave 4 to play out as the alternate, more complex sharp correction is highly probable. Having reached the current ATH in August 2020, the ensuing correctional Wave 4 played out an initial Wave A which had a sub-division of 5 waves. This further enhanced the likelihood of Wave 4 being a zigzag correction consisting of the following rules. Rules for Zigzag (5-3-5) • Zigzag is a corrective 3 waves structure (ABC) • Sub-division of Wave A and C is 5 waves • Wave B can be any corrective structure • Wave B of a zigzag never moves beyond the origin of Wave A. •Wave B of a zigzag always subdivides into a zigzag, flat, triangle, or combination of the three. Wave B failed to surpass the origin of Wave A and in doing so respecting the following rule; Wave B never moves beyond the origin of Wave A. This added further confluence to the correctional sequence being identified as a zigzag and we can assume that there is a higher probability that Wave C will end with going beyond the completion of Wave A according to the following guideline; Wave C of a zigzag will often end beyond the pivot of wave A. Although truncation cannot be ruled out entirely. Another guideline which is important to note here is of the guidelines for channeling. One particular guideline states that; Wave C in a zigzag will often end at the projected trendline of the parallel channel. The obstacle here being the trendline of the larger degree channel. For this reason, it is my personal opinion that the wave C will not meet the trendline of its parallel channel. Rather, ending at the trendline of the larger degree. In any case, both scenarios are possible as a further channel guideline accommodates the possibility of a throw-under; a possible throw-under could also occur with wave 4 falling below the trendline. This would allow for Wave C to end at the trendline of the larger degree channel. Although this would mean that the completion of Wave C will need to be much sharper and a significant throw-under which is less likely to occur. For this reason, I should think the guideline of Wave C ending beyond Wave A to be sufficient. The guidelines covered above aren’t exhaustive, those highlighted are for the purpose of this analysis. I hope you have found the above information educational. Please remember that Elliot Waves are most effective for the long term analysis of markets and one should not make any trading decisions based on this theory unless they fully understand it. If you found this helpful, I would most appreciate it if you would like the publication and leave a comment. You are most welcome to follow if you are interested in reading further publications/ideas of a similar nature. A breakdown of the lower degree wave counts will be published soon. Thank you for taking the time. BeyondEdge
FOREXCOM:XAUUSDEducation
by BeyondEdge
20
MONEY WAVE The Money Wave is the holy grail of the Elliott wave. The money wave is the third wave of an Elliott wave structure. The third wave starts at the completion/end of wave 2 and aggressive entry can be upon a clear reversal candlestick while more positions can be added upon the breakout at the end of wave 1. Targets are 161.80% or 200% of wave 1. It might sometimes exceed this if there is elongation. Third waves move fast with strength, and the direction is clear when the price is within a third wave. Day traders may trade short-lived third waves seen on hourly charts. More long-term traders may trade third waves at larger degrees on daily and weekly charts. Long-term investors would trade third waves on weekly and monthly charts. Which degree you are looking to trade will depend upon your risk appetite and your experience. As a general rule, trading waves below a minor degree involve more buying and selling. You have to watch the market daily, even hourly. The more times you enter and exit the market the more room for error, and so the greater the risk. Trading at minor, intermediate, and primary degrees involves fewer entries and exits and there is less risk. If your wave count is correct and you identify a third wave you can hold a position for weeks or months for profit. Learn the following ratio of Fibonacci Level you need to determine the point of Entry and Exit. 1.Wave 2 should end at 50%, 61.8%,76.4%, 78.6% or 85.4% of Wave1 2.Wave 3 use to be 161.8% of Wave 1-2 but it can also be 200%, 261.8%,323.6% of Wave 1-2. 3. Wave 4 should end at any of this level of Fib 14.6%, 23.6%, 38.2%, or 50% of Wave 3 but not more than 50%. 4. Wave 5= Wave 1 length or 61.8% of Wave 1-3 or 123.6%, 161.8% of Wave 4.
TVC:UKOILEducation
by westbellisyfx
4
TRIANGLE Triangle is found in the position of wave 4, wave B of A-B-C correction, or in wave X in double zig-zags (W-X-Y) or triple zig-zags (W-X-Y-X-Z). Triangles usually tell that the price will move in the dominant trend once more. We have four types of triangles: 1. Barrier Triangle: Wave D ends at the same endpoint as wave B. 2. Contracting Triangle: Trendlines prices usually converge. 3. Expanding Triangle: Trendlines prices usually diverge. 4. Running Triangle: Wave B moves above the start of wave A. Running & Contracting triangles are common. Barrier& Expanding triangles are less common. Triangles take time and move price sideways. It is very easy for a trader to label a triangle ABCDE. If a triangle is seen then expect the price to exit the triangle in the same direction it entered, and that the movement out of the triangle to be the last movement in that direction.
Education
by westbellisyfx
🌊 ELLIOTT WAVES CHEAT SHEET 🌊10 Rules to 🏄‍♂️ them all! Hello, You may have never heard of Elliott Wave Theory before! Here is a cheat sheet for Elliott Waves for top 10 Rules, so you can master them all! print this out and keep on your desk. How do you read Elliott waves? The Elliott Wave Theory is interpreted as follows: Five waves move in the direction of the main trend, followed by three waves in a correction (totaling a 5-3 move). This 5-3 move then becomes two subdivisions of the next higher wave move (fractal). The Elliott wave principle is a form of technical analysis that finance traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors. Ralph Nelson Elliott (1871–1948), a professional accountant, discovered the underlying social principles and developed the analytical tools in the 1930s. He proposed that market prices unfold in specific patterns, which practitioners today call Elliott waves , or simply waves. Elliott published his theory of market behavior in the book The Wave Principle in 1938, summarized it in a series of articles in Financial World magazine in 1939, and covered it most comprehensively in his final major work, Nature's Laws: The Secret of the Universe in 1946. Elliott stated that "because man is subject to rhythmical procedure, calculations having to do with his activities can be projected far into the future with a justification and certainty heretofore unattainable." The empirical validity of the Elliott wave principle remains the subject of debate. OpenSea version in signature below
COINBASE:BTCUSDEducation
by ArShevelev
15
How an "Ending Diagonal" really forms and what it meansI've written most of the tutorial on the chart. Some will just call this a different form of a triangle. But I find this to be my favourite pattern of all and when they are clear, there is no doubt on the reversal They happen most often at the top of wave 3, because they form as a battle between Bulls and Bears. (or vise versa). I remember when I spotted my first one about 14 years ago and the incredible powerful turn that ensued. I thought it was magical.
OANDA:SPX500USDEducation
by peterdcharlebois
What constitute a trend... While going through the popular ideas in trading view, I come across MATIC and I felt I should share my wave count on this coin. While the publisher uses conventional technical analysis it is worth mentioning that it come with a lot of shortcomings which the wave principles did indeed provide. For example, the region highlighted in green does does constitute a valide trend and as such we dont expect to see trending price action in coming days. I will recommend you look for lower price action and possibly correlate it with BTC that way you increase your chances of success.
MEducation
by maonimisi
Trader's behavior towards price All traders' behavior is embedded and reflected in the movements of market prices, as a trader you must always endeavor to take a step back and try to separate yourself from the noise. This is best achieved by considering the history of price and current live price action to try to measure where the next prices are most likely to be heading. This is why PRICE DATA OF USDCHF JUNE 1994 to OCTOBER 1995 was Double zigzags making a correction deeper. Then price moves with 5 impulsive from NOVEMBER 1995 to SEPTEMBER 1997. Learn the following ratio of Fibonacci Level you need to determine the point of Entry and Exit. 1.Wave 2 should end at 50%, 61.8%,76.4%, 78.6% or 85.4% of Wave1 2.Wave 3 use to be 161.8% of Wave 1-2 but it can also be 200%, 261.8%,323.6% of Wave 1-2. 3. Wave 4 should end at any of this level of Fib 14.6%, 23.6%, 38.2%, or 50% of Wave 3 but not more than 50%. 4. Wave 5= Wave 1 length or 61.8% of Wave 1-3 or 123.6%, 161.8% of Wave 4.
Education
by westbellisyfx
1
Elliott wave for beginners📓Back in 1930, Ralph Nelson Elliott decided to figure out how the market works. After a long analysis of the charts, Elliott made a discovery that still does not lose its relevance. Elliott was able to identify the "breath" of the market. This new method of graph analysis is called Elliott Wave Analysis . As it turned out, the theory of wave analysis can be used on all timeframes and assets. 🚀The basis of the analysis is the idea that the market moves by impulses and corrections. As Elliott noted, the trend movement consists of 5 waves - 3 impulsive and 2 corrective, after which a correlation of three waves against the trend begins. ❗️There are a couple of rules worth remembering when determining waves: 1. Wave 2 never recovers more than 100% of wave 1. Usually the recovery is from 50% to 61.8% of wave 1. 2. Wave 4 never recovers more than 100% from wave 3. It usually declines between 38.2% and 50% of wave 3. 3. Wave 3 always extends beyond the end of wave 1 and is never the shortest; Wave 3 usually expands by 161.8 x wave 1. It is important to remember these rules in order to correctly identify the waves. In order not to make a mistake or go ahead of time, it is worth looking for the end of the second wave and go to the third, since it is the strongest and will bring the most profit. Indicators such as: MACD, RSI can be used to accurately determine the wave. 📌There are a couple more observations that will help your profitable trading: -If wave 3 is the longest wave, then wave 5 will be approximately equal to wave 1. -Wave 2 and Wave 4 will alternate. If wave 2 represents a sharp correction, wave 4 represents a flat correction and vice versa. -After the sequence of five Elliott waves is completed, the ABC corrective waves usually end near the bottom point of wave 4. 🏆In order to learn how to correctly identify waves, enter a position in time and exit it in time, you need experience, so follow the charts, analyze and eventually the profit will come to you. Good luck!
OANDA:XAUUSDEducation
by tima_tip
2
Trading Chaos Part 5 | CorrectionsHello, everyone! Last time we considered the Elliott waves 1-2-3-4-5 cycle. Today we are going to talk about correction types. Corrections contains of 3 waves A-B-C. Bill Williams recommends to trade only Simple Zigzag corrections, but we also should be able to distinguish other types of corrections. Let's go! Simple Zigzag Correction If you find that the corrective Wave A consists of 5 waves there is a high probability that current correction type is simple zigzag. If you decided to trade this correction, you should wait the Wave B end and execute the short trade. How to spot it's end? Find the target zone, usually it is between 50% and 62%, one of the three bars on the top should be the squat bar. Also you should find the fractal on the top.
Education
by Skyrexio
1