🔍 The Foundation: Motive vs. Corrective Waves
Every price move can be classified into one of two types:
Motive waves (which move in the direction of the trend)
Corrective waves (which move against it)
From there, we break it down into five core patterns:
Impulse
Ending Diagonal
Zigzag
Flat
Triangle
Each has its own rules and guidelines—but don't get overwhelmed. You don’t need to memorize everything before getting started.
🛠️ Chart Labeling Tips for Beginners
When you're looking at a new price chart (especially a forex chart), here are some practical steps to follow:
Start from an extreme — either a major high or low. That gives you the cleanest structure.
Look for clarity — big, strong moves are usually motive waves. Choppy sideways moves are usually corrections.
Use higher timeframes — if you’re planning to hold long-term, weekly or monthly charts in log scale are most helpful.
Avoid complexity at first — don’t start by labeling patterns like expanding diagonals or triple zigzags. Stick with the basics: 5’s and 3’s.
Remember wave tendencies — Wave 3 is usually the strongest and longest wave in a motive structure. In commodities, though, Wave 5 is more commonly extended.
Look for Wave 3 as a clue — One of the biggest clues when trying to figure out where you are in the Elliott Wave structure is to find Wave 3. It typically has a strong, impulsive character and stands out clearly on the chart. Once you’ve spotted Wave 3, it becomes much easier to build the rest of the count around it.
⚠️ Don’t Force the Count
If the structure isn't clear, don’t try to label it anyway just for the sake of having a count. Trading when the chart is unclear is like driving 100 km/h in heavy fog.
💡 If you can’t count it, don’t trade it.
When you do spot a clean 5-wave move, it often implies that a correction will follow—usually into the area of the previous 4th wave. That’s a high-probability area to watch for setups.
Here’s an example of a clean 5-wave move up. You can clearly see:
Wave 1: Initial surge
Wave 2: Pullback
Wave 3: Strongest move (often extended)
Wave 4: Sideways correction
Wave 5: Final push
🤯 Avoid the “Alice in Wonderland” Trap
Don’t fall down the rabbit hole of switching between timeframes endlessly:
Weekly → Daily → 1H → 15m → 5m → 1m... and still confused.
Take a step back. Zoom out. Look at the shape, the rhythm. The story becomes clearer.
🧩 Patterns Are Probabilities, Not Predictions
Just because a pattern could be something complex doesn’t mean it should be labeled that way. Always ask:
Is it probable, or just possible?
Occam’s Razor applies here: the simplest explanation is usually the best one.
🔺 Reminder About Triangles
If you see sideways, contracting price action near the end of a move, chances are it’s a triangle.
Triangles precede the final wave in a sequence.
Don’t try to get clever and label skewed or complex variations unless you have strong confirmation.
🧠 Final Takeaways
Keep it simple: start with 5s and 3s.
Focus on clear impulse and correction structures.
Don’t trade what you can’t confidently label.
Wave 3 is your guidepost—if you can spot it, the rest often falls into place.
Complexity comes with experience—but you don’t need it to trade effectively.
Every price move can be classified into one of two types:
Motive waves (which move in the direction of the trend)
Corrective waves (which move against it)
From there, we break it down into five core patterns:
Impulse
Ending Diagonal
Zigzag
Flat
Triangle
Each has its own rules and guidelines—but don't get overwhelmed. You don’t need to memorize everything before getting started.
🛠️ Chart Labeling Tips for Beginners
When you're looking at a new price chart (especially a forex chart), here are some practical steps to follow:
Start from an extreme — either a major high or low. That gives you the cleanest structure.
Look for clarity — big, strong moves are usually motive waves. Choppy sideways moves are usually corrections.
Use higher timeframes — if you’re planning to hold long-term, weekly or monthly charts in log scale are most helpful.
Avoid complexity at first — don’t start by labeling patterns like expanding diagonals or triple zigzags. Stick with the basics: 5’s and 3’s.
Remember wave tendencies — Wave 3 is usually the strongest and longest wave in a motive structure. In commodities, though, Wave 5 is more commonly extended.
Look for Wave 3 as a clue — One of the biggest clues when trying to figure out where you are in the Elliott Wave structure is to find Wave 3. It typically has a strong, impulsive character and stands out clearly on the chart. Once you’ve spotted Wave 3, it becomes much easier to build the rest of the count around it.
⚠️ Don’t Force the Count
If the structure isn't clear, don’t try to label it anyway just for the sake of having a count. Trading when the chart is unclear is like driving 100 km/h in heavy fog.
💡 If you can’t count it, don’t trade it.
When you do spot a clean 5-wave move, it often implies that a correction will follow—usually into the area of the previous 4th wave. That’s a high-probability area to watch for setups.
Here’s an example of a clean 5-wave move up. You can clearly see:
Wave 1: Initial surge
Wave 2: Pullback
Wave 3: Strongest move (often extended)
Wave 4: Sideways correction
Wave 5: Final push
🤯 Avoid the “Alice in Wonderland” Trap
Don’t fall down the rabbit hole of switching between timeframes endlessly:
Weekly → Daily → 1H → 15m → 5m → 1m... and still confused.
Take a step back. Zoom out. Look at the shape, the rhythm. The story becomes clearer.
🧩 Patterns Are Probabilities, Not Predictions
Just because a pattern could be something complex doesn’t mean it should be labeled that way. Always ask:
Is it probable, or just possible?
Occam’s Razor applies here: the simplest explanation is usually the best one.
🔺 Reminder About Triangles
If you see sideways, contracting price action near the end of a move, chances are it’s a triangle.
Triangles precede the final wave in a sequence.
Don’t try to get clever and label skewed or complex variations unless you have strong confirmation.
🧠 Final Takeaways
Keep it simple: start with 5s and 3s.
Focus on clear impulse and correction structures.
Don’t trade what you can’t confidently label.
Wave 3 is your guidepost—if you can spot it, the rest often falls into place.
Complexity comes with experience—but you don’t need it to trade effectively.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.