Elliott Waves

Elliott Wave Theory

Elliott Wave theory is one of the most popular and effective approaches to systematic trading. TradingView may be the only place where you can use Elliot Waves indicator with real-time charts for free. We are proud to offer this great tool to our users, and we hope to see more trading ideas with Elliot Wave analysis published.

Elliott Wave Indicator

Elliott Wave Indicator is available in the Indicators drop-down menu on the chart and is marked with an star for convenience. It automatically calculates all types of waves, from Subminuette to GrandSuperCircle. Each wave has its own color and is displayed when mouse cursor touches a pivot point – try it yourself:

We will continue improving the Elliott Wave indicator based on feedback from our community. If you have questions or suggestions, please use our feedback service.

Elliott Wave Drawing Tools

Elliott Wave drawing tools are for creating wave counts. They are located on the top toolbar and include five types of tools for drawing different types of waves.

Elliott Waves Based Ideas

Our users actively use Elliott Waves for analysis and trading ideas. You can find them by using the Trading Idea Search.

Intro to Elliott Wave Theory

The Elliott Wave Principle differs from other theories based on cycles in that it assumes no absolute time requirements for cycles to complete. Elliott Wave theory suggests that market price action obeys the Fibonacci sequence and is recurrent. There are two major types of waves in market cycles, the Impulse Wave and the Corrective Wave. Each Impulse Wave can be divided into 5 components numbered “1”, ”2”, “3”, “4”, and “5”, while each Corrective Wave can be divided into 3 components designated with letters “a”, “b” and “c”.

Key point is that the Elliott Wave is fractal in nature. The wave structures of the GrandSuperCycle and the Minuette are the same. Disregarding the magnitude of the swing, each Impulse Wave appears in a sequence of 5 smaller waves, while each Corrective Wave appears in a sequence of 3 smaller waves.