The Market Move in Waves
Updated
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I'll publishing a series of ideas called " The market move in waves " the content will be free & for educational purpose.
The main idea of this work is to add valeu to the Tradingview community by helping new market participent to learn how to read charts and to build confidence in there analysis so they can make money from the market movments,
If you find this idea helpfull please hit like button and if you have any other sugestion please comment below, so i can cover your ideas in my future works :
In the 1930s, Ralph Nelson Elliott discovered that stock market prices trend and reverse in recognizable patterns.
The patterns he discerned are repetitive in form but not necessarily in time or amplitude.
Elliott isolated five such patterns, or "waves" that recur in market price data. He named, defined and illustrated these patterns and their variations.
He then described how they link to form the same patterns of the next larger size, and so on, producing a structured progression. He called this phenomenon The Wave Principle.
The Wave Principle is governed by man's social nature, and since he has such a nature, it's expression generates forms. As the forms are repetitive, they have predictive value.
Sometimes the market appears to reflect outside conditions and events, but at other times it is entirely detached from what people assume are causal conditions. The reasons is that the market has a law of its own.
It is not propelled by the external causality to which one becomes accustomed in the everyday experiences of life. The path of prices is not a product of news.
Nor is the market the cyclically rhythmic machine that some declare it to be. Its movement reflects a repetion of forms that is independent both of presumed causal events and of periodicity.
The market progression unfolds in waves. Waves are patterns of directuional movement. More specifically, a wave is any one of the patterns that naturally occur, as described bellow.
I'll publishing a series of ideas called " The market move in waves " the content will be free & for educational purpose.
The main idea of this work is to add valeu to the Tradingview community by helping new market participent to learn how to read charts and to build confidence in there analysis so they can make money from the market movments,
If you find this idea helpfull please hit like button and if you have any other sugestion please comment below, so i can cover your ideas in my future works :
In the 1930s, Ralph Nelson Elliott discovered that stock market prices trend and reverse in recognizable patterns.
The patterns he discerned are repetitive in form but not necessarily in time or amplitude.
Elliott isolated five such patterns, or "waves" that recur in market price data. He named, defined and illustrated these patterns and their variations.
He then described how they link to form the same patterns of the next larger size, and so on, producing a structured progression. He called this phenomenon The Wave Principle.
The Wave Principle is governed by man's social nature, and since he has such a nature, it's expression generates forms. As the forms are repetitive, they have predictive value.
Sometimes the market appears to reflect outside conditions and events, but at other times it is entirely detached from what people assume are causal conditions. The reasons is that the market has a law of its own.
It is not propelled by the external causality to which one becomes accustomed in the everyday experiences of life. The path of prices is not a product of news.
Nor is the market the cyclically rhythmic machine that some declare it to be. Its movement reflects a repetion of forms that is independent both of presumed causal events and of periodicity.
The market progression unfolds in waves. Waves are patterns of directuional movement. More specifically, a wave is any one of the patterns that naturally occur, as described bellow.
Note
In markets, progress utimately takes the form of five waves of a specific structure.
Three of these waves, which are labeled 1, 3, 5 actually effect the directional movement. They are separated by two countertrend interruptions, which are labeled 2, 4.
The two interruptions are apparently a requisite for overall directional movement to occur.
Elliott noted three consistent aspects of the five-waves form:
1/ Wave (2) never moves beyond the start of wave (1).
2/ Wave (3) is never the shortest wave.
3/ Wave (4) never enters the price teritory of wave (1).
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