Elliot Wave Alternation The guideline of alternation states that if wave two of an impulse is a sharp retracement, expect wave four to be a sideways correction, and vice versa. Figure 22 shows the most characteristic breakdowns of impulse waves, both up and down. Sharp corrections never include a new price extreme, i.e., one that lies beyond the orthodox end of...
The object of wave counting is to be able to identify prime trading opportunities with the lowest risk based on what we know about how waves work. Yes, it's complicated and takes a lot of work and CONTINUOUSLY adjusting your counts in order to stay ahead of the game. But if you are lazy and don't want to put in the work, why are you expecting to make money...
Background: Since March 2015 low, the actual wave counts has been difficult as we had very overlapping swings in both directions. In the processed the strong rally from Dec 2016 low started with initial trust that do not show clear 5 minor wave and the pull back was confusing before it commenced a very strong rally define in narrow up trending channel, which many...
Before we delve into the double bottom analysis, I want to take a moment to express my immense gratitude to lucemanb for his exceptional creation of the zigzag indicator. This remarkable tool has become an integral part of my daily trading routine, aiding me in identifying critical price points and potential reversals. Additionally, I must extend a heartfelt...
Trading in its basis is extremely simple. Next to no knowledge is actually needed .. yet most seem to fail to understand or ac knowledge (the irony 😂 ) this. Knowledge can help .. but it's not a must (plenty of examples out there, traders that (think they) 'know' tons of strategies and indicators yet fail to produce any meaningful amount of money but also...
Hi everyone. As you know, There are 3 orders of simple patterns of waves, also, there are 13 variations of simple patterns: impulse, ending diagonal, leading diagonal, zigzag, double zigzag, triple zigzag, regular flat, expanded flat, running flat, contracting triangle, descending triangle, ascending triangle and expanding triangle. Zigzag (5-3-5) A single...
Hello everyone, In this video, we explore how to draw trend lines in more subjective and algorithmic way. Problem with drawing trend lines manually are Subjective and may be influenced by personal factors Easy to fit on historical data based on our biases. Chances of overfitting to confirm our biases/ideas. We can avoid these drawbacks by using an...
Elliott Wave Quick Cheat Sheet Note that I post a quick guide for beginners. I was struggled as a beginner but thanks to my mentor. (I post a quick guide here as sometimes I need to peek as for my cheat sheet) By now we all have learned patterns like Head and Shoulders, Wedge, Triangle, Double top, Double bottom, Pennant (literally a triangle or diagonal),...
The daily UKX since its all - time high is a good example of a completed or possibly still developing Elliott wave - Horizontal Triangle. The clue to discovering a Horizontal Triangle is that both rallies and declines have choppy moves that overlap prior sub waves. The supposed Intermediate degree wave (A) is illustrated with detailed sub waves. The entire...
Continuing our discussion on trading chart patterns, this is our next tutorial after Trading Converging Chart Patterns This tutorial is based on our earlier articles on pattern identification and classification. Algorithmic Identification of Chart Patterns Flag and Pennant Chart Patterns In this tutorial, we concentrate on diverging patterns and how to...
Hi everyone. As you know, There are 3 orders of simple patterns of waves, also, there are 13 variations of simple patterns: impulse, ending diagonal , leading diagonal , zigzag , double zigzag , triple zigzag , regular flat, expanded flat, running flat, contracting triangle, descending triangle , ascending triangle and expanding triangle. Zigzag (5-3-5) A single...
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 Please refer to Elliott-Wave-Theory - Motive-Waves post covering rules and tendencies...
Maybe this near "full-stack" technical analysis using Wyckoff and Elliot Theory along with relevant indicators such as Moving Average and Cumulative Volume Delta (CVD) will puzzled some of the traders who used to have a simpler analysis on the market. But to those who curious this is something that is really interesting to know. The chart above is showing us how...
Here is the example of complex wave calculation based on elliott wave principle. Overall complex correction wave consists of 5 combined wave (w)-(x)-(y)-(x)-(z). These complex correction played out for very long period time thus can be very confusing. (w) wave is a zigzag of a-b-c, followed by triangle a-b-c-d-e (x), another zigzag a-b-c (y), followed by flat...
There are always three trends in any market: Primary, Intermediate and Minor. All three trends are active all the time and may be moving in opposing directions. 1) It all starts from identifying Minor Tops(MT) and Minor Bottoms(MB). General time rule: MT is present if the next three successive days fail to penetrate its High. MB is present if the next...
a- Usually happens in wave B or wave 4 b- Wave D in triangle itself c- If in second then 2 will be zigzag and this will happen in B of zigzag d- X wave of Double Three correction and XX wave of Tripple Three e- XX wave of Double Zigzag correction f- Wave D in triangle itself Subdivided into three (3-3-3-3-3) Subdivision of ABCDE can be either ABC, wxy, or flat
a- Usually happens in wave B or wave 4 b- Wave D in triangle itself c- If in second then 2 will be zigzag and this will happen in B of zigzag d- X wave of Double Three correction and XX wave of Tripple Three e- XX wave of Double Zigzag correction f- Wave D in triangle itself Subdivided into three (3-3-3-3-3) Subdivision of ABCDE can be either ABC, wxy, or flat
There is a strong bias about chart patterns and their interpretation in the technical analysis space. It is a very common belief that a rising wedge forms bearish sentiment and a falling wedge forms bullish sentiment. Is that really true and how much we can rely on such bias? In order to understand this, we need to dig a little bit about how such concepts could...