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Elliott Wave

Elliott Wave Theory - Corrective WavesThe Elliott Wave Principle at its core consists of motive waves, movement in the direction of the larger trend, and corrective waves, any correction against the main trend. Market prices alternate between a motive phase, and a corrective phase on all time scales of trend Please refer to Elliott-Wave-Theory - Motive-Waves post covering rules and tendencies of motive waves, participants psychology at every stage of an motive wave and how to identify/forcast them using both fibonacci relations as well as channeling technique (price action). This post is about Corrective waves . Corrective waves have a lot more variety and less clearly identifiable compared to Motive waves and are an important component of the Elliott Wave Theory. Corrective waves needs more attention and to be mastered to become a successfull Elliott wave practitioner Corrective Waves Corrective waves, consist of three—or a combination of three—sub-waves that make net movement in the direction opposite to the trend of one larger degree There are many corrective patterns ranging from simple to complex yet they are just made up of three very simple easy-to-understand formations Disclaimer: below presented figures displays guidelines that elliott waves may form. Guidelines are tendencies, not set in stone rules a - ZigZag Corrective Wave (5-3-5) Consist of three sub-waves against the main trend and labeled as ABC. ZigZag is a 5-3-5 structure internally b - Flat Corrective Wave (3-3-5) Consist of three sub-waves against the main trend and labeled as ABC. The labelling is the same as ZigZag, the difference is in internal structure. Flat is a 3-3-5 structure internally and differs from ZigZag in the subdivision of the wave A. There are three different types of Flats: Regular, Running and Expanded Flats. c - Triangle Corrective Wave (3-3-3-3-3) Triangle formations are corrective patterns that are bound by either converging or diverging trend lines. Corrective structure consist of five sub-waves labelled as ABCDE, subdivision of a triangle is 3-3-3-3-3 Triangle corrective waves types can be listed as : Ascending, Descending, Symmetrical, and Expanding Triangles d - Complex Corrective Waves - Double (3-3-3) and Tripple Three (3-3-3-3-3) Double three is a sideways combination of two corrective patterns, labelled as WXY Triple three is a sideways combination of three corrective patterns, labelled as WXYXZ Please refer to Difference between ABC and WXY , for further details and structures of Complex Corrective waves as well as the differences between Simple corrective structures The Elliott Wave Theory provides constructive insight that can help technical analysts monitor and understand the movements of financial asset prices over the short and long term. Please note that these patterns do not provide any kind of certainty about future price movement, but rather, serve in helping to order the probabilities for future market action. They can be used in conjunction with other forms of technical and fundamental analysis, including technical indicators, to identify specific opportunities. Technical Indicators Ocsillators to detect divergencies (includes 15 different ocsillator) : OSCs Elliott Wave Oscillator : EWO Auto Fibonacci Retrecment/Extentions : Auto Fib Retrecment-Extentions Volume Profile : Volume-Profile-and-Volume-Indicator Other indicators that are referred among elliott wave practitioners Pitchforks ( how to apply ), Pitchfans , FibFans ( how to apply ), FibChannels ( how to apply ), FibTime , Linear-Regression-Channel ( what it is ), Raff Regression Channel ( what it is )
Education
by dgtrd
30
How to use different types of Fibonacci in TradingViewWave Relationships and their relation by Fibonacci Ratios are among the most helpful tools for target prediction. There are different types of Fibonacci and different tools with different names in different software packages. This may make users somehow confused . Here, we try to shed some light on various mostly used Fibonacci types and explain their usage for target prediction. Also we explain their related tool in TradingView and their way of implementations. As shown on the chart, there are four main types of Fibonacci : 1- Internal Retracement 2. External Retracement (Extension) 3. Expansion 4. Projection Before going through details, it is worth to mention that knowing wave relationships is a key to implement Fibonacci tools accurately. Different types of wave relationships is beyond the scope of this publication. Here, for simplification, we show most simple type of wave cycle which is ascending complete cycle with one 5 leg up impulse and one abc form of correction . Also, we try to explain more typical Fibonacci Ratios for target prediction and skip less often ones. 1. Internal Retracement: This is simply for calculation of the amount of correction in the main trend. It means we can predict where a counter trend correction may end. As shown on the chart, it can be used for target prediction of wave 2 and 4 in an up trend and also wave B in a down trend. It can also be used for calculation of end of wave C which is the end of correction of whole up going wave. Green arrows on the picture show the direction of using this tool which is "Fib Reracement" in TradinView. For example, we put first point at the start of wave 1 and second point at the end of this wave for obtaining possible targets for wave 2 and so on. Wave 2 can end at 0.382, 0.5, 0.618 and 0.786 Fibonacci Retracement levels of wave 1. Fibonacci levels at which wave 2 ends can send us a signal about the amount of next waves. This is again beyond the scope of this publication. Wave 4 can typically end at 0.382 or 0.5 Retracement of wave 3. Less and more amount of Retracements are also possible, but those make wave relations more complicated and does not match with our simple shown example. Wave B typically corrects 0.382 , 0.5 and 0.618 of wave A in a simple zigzag correction. More Retracements signals for more complicated corrections e.g a flat correction. Wave C Retracement levels are similar to wave 2 in shown wave cycle since it is end of a larger degree wave 2. 2. External Retracement: This Fibonacci which is also called " Extension" can be used for calculation of end of wave 3 or 5 in an up trend and end of wave C ( which is end of whole correction) in a down trend. We have same tool as internal retracement in TradingView however ,unlike internal Retracement, an extension should be drawn from a high to a low in an up trend and vice versa as shown by green arrows on the related figure. Wave 3 Fibonacci Ratios by extension depends on the amount of wave 2 correction. For example, 1.618 or 2.618 extension of wave 2 can be the target for wave 3. Robert. C. Miner has proposed a very useful table for targets using external retracement. Wave 5 typical targets are 1.272, 1.414 and 1.618 extensions of wave 4. This ratios are also the same for calculation of end of wave C. 3. Expansion: Based on my experience, Fibo expansion is most useful when we have over extended waves for example over extended wave 3. In this case , 1.618 or even 2.618 Fibo levels can be the typical targets. Related tool in TradingView is Trend-Based Fib Extension. Please note that this tool in TradingView is a three point Fibonacci while expansion is two point Fibonacci tool. Therefore, Implementing this tool for obtaining Expansion levels is a little tricky. For example, for calculation of wave 3 we should put first point at the start of wave 1 and double click on end of wave 1. There are also more details in implementing Fibo expansion for example we have different types of Fibo expansion. We can skip details here to keep this publication as simple as possible. 4. Projection: This is the only 3 points Fibonacci that we have. Some software packages call this Fibonacci as Expansion !!. Its related tool in TradingView is Trend-Based Fibo Extension. It is a very useful tool for calculation of end of wave 3, 5 and C. Again green arrows show how to use this tool . For example, For wave 3 target calculation we set first point at the start of wave 1, second point at end of wave 1 and third point at the end of wave 2 or start of wave 3. 1.618 and 2.618 Fibo levels are typical for end of an extended wave 3 when using Fibo projection. 100 % Projection of wave 1 from low of wave 4 is a typical one for end of wave 5 target. Also 0.382 or 0.618 projection of wave 1-3 from low of wave 4 is a helpful ratio for wave 5 target calculation. For a wave C, most common projection is 100 % of wave A from top of wave B. How to make a Potential Reversal Zone ( PRZ) : We can make our potential reversal zone stronger by combining all proposed tools . Take another look at the figures. What can we see? yes. We know four tools now for calculation of end of wave C. Suppose how strong a possible buy zone can be when 4 different tools suggest it as potential reversal target ! Hope this to be helpful. Please do not hesitate to ask questions if you feel need to ask. Good luck every one.
NASDAQ:TSLAEducation
by SaeedSajedi
3
Running triangle and Leading DiagonalsTriangles are corrective patterns and diagonals are motive patterns. Upon completing a triangular pattern the trend resumes. Ending diagonal marks the end of a major wave or a trend and signals upcoming trend reversal or major correction. Leading diagonal marks the start of a major wave or a trend after a major correction or reversal to previous trend. After a leading diagonal, a short correction can be expected before the trend resumes in the direction of leading diagonal. In the previous post, the comparison is between running triangle and ending diagonals. This post compares running triangle and leading diagonals. Chart1: Running triangle and leaning diagonal in uptrend As mentioned the comparison is in an uptrend. Accordingly upward move is termed as directional move and move to the downside is termed as non-directional. A running triangle has non-directional momentum ie faster moves to the downside (wave A, C and E) than the upward moves (Waves B and D). These non-directional moves donot retrace the previous move completely. On the contrary, Leading diagonal has directional momentum ie faster moves to the upside (waves 1, 3 and 5) in the direction of trend and these upward moves completely retrace the previous non-directional corrective moves (wave 2 and 4). Chart2: Running triangle and leading diagonal in downtrend As mentioned the comparison is in a downtrend. Accordingly downward move is termed as directional move and move to the upside is termed as non-directional. A running triangle has non-directional momentum ie faster moves to the upside (wave A, C and E) than the downward moves (Waves B and D). These non-directional moves donot retrace the previous move completely. On the contrary, Leading diagonal has directional momentum ie faster moves to the downside (waves 1, 3 and 5) in the direction of trend and these downward moves completely retrace the previous non-directional corrective moves (wave 2 and 4).
Education
by Hari-Ram-Kumar
Elliott Wave Theory - Motive WavesElliott Wave Theory , 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. The very basics of Elliott Wave Theory ; The Elliott wave principle at its core consists of motive waves, movement in the direction of the larger trend, and corrective waves, any correction against the main trend. Market prices alternate between a motive phase, and a corrective phase on all time scales of trend. Wave analysis offers insights into trend dynamics and helps you understand price movements in a much deeper way and offers the trader a level of anticipation and/or prediction when searching for trading opportunities Motive Waves Motive waves in general can be categorized as Impulse and Diagonal waves a- Impulse Waves Impulse waves consist of five sub-waves in the same direction as the trend of one larger degree. Elliott proposed that financial price trends, the waves, are created by investor psychology or sentiment and the waves can be measured and forecast using Fibonacci numbers . In adition to using fibonacci retracments and extetion to forcast probable targets, channeling technique is also presented, where channeling technique is used to forecast wave formations and targets using price action . Disclaimer: besides the rules, the below presented figures displays guidelines that elliott waves may form. Guidelines are tendencies, not set in stone rules b- Diagonal Waves (Wedges) Another form of motive waves are diagonals, they appear in the beginning of a larger trend, called leading diagonal and at the end of the larger trend, called ending diagonal They are five-wave structures in the direction of the main trend within which wave 4 almost always moves into the price territory of (overlaps) wave 1, breaking the rule of impulse motive wave Diagonals take a wedge shape within two converging lines Elliott was careful to note that these patterns do not provide any kind of certainty about future price movement, but rather, serve in helping to order the probabilities for future market action. They can be used in conjunction with other forms of technical and fundamental analysis, including technical indicators, to identify specific opportunities. Technical Indicators Using various technical indicators among elliott wave practitioners is not so common, except few, probably the common one used is a kind of momentum indicator, such as RSI or MACD , to detect divergencies Fibonacci retracement and extension drawing tools are essential for elliott wave practitioners. In todays computerized era many of the darawing tool's auto indicator versions are availabe on the trading platforms, such as Auto Fib ( where and how tp apply ) Elliott Wave Oscillator ( EWO ) , is inspired by the Elliott Wave principle and helps counting the waves Volume and Volume Profile ( Vol / Vol Profile ) combined with price action is esential in technical anlaysis and for elliott wave practitioners helps to identify impulse and correction phases Other indicators that are referred among elliott wave practitioners Pitchforks ( how to apply ), Pitchfans , FibFans ( how to apply ), FibChannels ( how to apply ), FibTime , LinReg Channel ( what it is ), Raff Regression Channel ( what it is ), etc
Education
by dgtrd
37
Learn Trend Analysis | Impulse & Retracement Legs 📈 Hey traders, As you asked me, in this educational post we will discuss some price action basics. No matter whether you are a fundamental trader or a technical trader you should be able to execute trend analysis. You should always know where the market is going; if it is bullish or bearish. One of the simplest ways to execute trend analysis is to perceive a price chart as a sequence of impulses and retracements. ➖The impulse leg is a trend-following move. It is characterized by heightened movement dynamics and speed. Usually the completion point of the impulse: sets a new lower low in a bearish trend, sets a new higher high in a bullish trend. ➖A retracement leg is a correctional movement within the trend. Its’ initial point is the completion point of the impulse or retracement leg and its completion point might be an initial point of a new retracement leg or of a new impulse leg. Usually, a retracement leg is characterized by a slow zig-zag movement. Usually the completion point of the impulse leg: sets a lower high in a bearish trend, sets a higher low in a bullish trend. Perceiving the price chart as the set of impulses, one can easily and objectively identify a global, mid-term and short-term market trend, price action trend-following, reversal and correctional patterns. What do you want to learn in the next educational articles? ❤️Please, support this idea with like and comment!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
9
FHZN - The power of elliot waves | Volume 2The zurich airport is tough, but in the coming months this toughness will be tested once again! SIX:FHZN Our last analysis on this share was published on January 12, in which we warned about a potential sell-off. In this analysis we highlighted the importance of the wedge formation to our subscribers. In the last days the stock fell by more than -20% and we have now left this formation. Today zurich airport published its earnings and based on them we can evaluate the progress of the company. The airport was able to slightly reduce its net loss in the past year but disappointed investors with lower revenues than expected . Revenues were just under 680 million , which is about half of what they were before the Corona crisis. The management announced that a full recovery to the pre-crisis level of 2019 is not expected until the end of 2025. Investors will have to be patient with the company and as most assumed there won't be a dividend payout again this year. This however gives the management the opportunity to direct the money to where it's most needed. Overall, the airport is recovering in small steps from the shock of the Corona crisis. The upcoming years will bring further difficulties, but the management will concentrate on navigating the company back to profitability. Technical explanation of the elliot wave structure: As mentioned above, the share price has fallen by almost -20% since we last warned of a sell-off. We as Mendenmein Capital see this as another confirmation of our calculations. Nevertheless, we assume that the share has now expanded a first downward impulse in the white wave (1) and in the coming weeks a slight recovery must be expected in the white wave (2). This wave will lay the foundation for further sell-offs and the target for the next year is located at just 95 swiss francs. The white wave (3) should be able to reach this target without any problems. After a short recovery in the white wave (4), a final wave (5) will continue to correct towards our final target of 80 swiss francs. We assume that this downward impulse will occupy us in the coming months and years. In the long term however, we are extremely bullish and the formations of the last years point towards a very large wave I / wave II super cycle. This means that we have a multi-year bull market ahead of us after the completion of wave II, our subscribers are familiar with this term by now. The long-term price target for this stock is 450.- and we at Mendenmein Capital are extremely confident in our optimistic views. On our website investors can learn more about the zurich airport share and other stocks! www.mendenmein-capital.com 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
Trading the cup and handle breakout ($ATOM) -18.02.22Ideal trading setup 1. round bottom with a small retracement What you would want to see on a classic cup and handle(cnh) is a nice round bottom with followed by a slight retracement. 2. Volume breakout After the formation of the cnh, the market will try to make a run, temporarily breaking the horizontal resistance. 3. Consolidation Even though the price drops at some point in this area, we see it bounce back up before breaking out of the consolidation zone. 4. Volume expansion on break out There is a significant increase in volume upon breakout, another good sign. 5. Breaking out of the consolidation This time around, we see the market trying to make another run up, and is eventually pulled back. 6.Volume expansion intact Although the market is dropping, we see the volume is still increasing. It is in form of a bearish candle, however since the movement happens inside a bullish channel, we can conclude that the increase is therefore bullish. 7. Bullish channel The price drops creates a bullish channels a bullish channel. I can see 4 waves in already (a-d). 8. The breakout Expecting to break out of the channel and eventually above of the consolidation ceiling thereby flipping resistance into support. If a resistance is tested several times, it weakens and the price will break through. 9. EMA squeeze and support We're looking for a crossover in EMAs (13, 21 55) withe the 55 acting as an overall support and the 21EMA running under the 13EMA. 10. Riding the wave. There are various ways of taking profits and everyone has their own preferences. Given one doesn't know when to take profits, the ideal exit will be when the price touches the 55EMA again, chances are by that time the EMAs might be flipping from being support and would now act as the resistance. Tip : You can add other tools like the MACD and the likes for better clarity. Note : This is a common alt coin breakout pattern, so it goes without saying that most coins at the moment are developing into this formation, only chose ATOM cause it was in my watchlist. Credits: @EmperorBTC Happy trading, due diligence is advised!
Education
by initmx
3
$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