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Elliottwavecorrection

Understanding Complex Structures: Elliott Wave Theory in ActionTechnical Analysis on Exampled chart of RBL Bank Ltd. using Elliott Wave Theory Understanding Complex Structures: Elliott Wave Theory in Action This analysis uses Elliott Wave Theory & Structures, which involve multiple possibilities. The analysis presented focuses on one potential scenario. The provided information is for educational purposes only, not trading advice. There is a risk of being completely wrong, and users are warned not to trade or invest solely based on this study. The content is not advisory and does not guarantee profits. We are not responsible for any kind of profits and losses; individuals should consult a financial advisor before making any trading or investment decisions. Elliott Wave Principles Elliott Wave Theory, developed by Ralph Nelson Elliott, is a widely used method of technical analysis. It helps traders analyze financial market cycles and forecast market trends by identifying patterns of investor psychology, reflected in price movements. According to Elliott, market prices unfold in specific patterns, termed as "waves". These waves are categorized into: Impulse Waves: Move in the direction of the overall trend and consist of five sub-waves. Corrective Waves: Move against the trend and consist of three sub-waves. Impulse waves are labeled as 1, 2, 3, 4, and 5, and corrective waves are labeled as A, B, and C. Complex corrections are labeled as W, X, Y, and sometimes Z. Chart Analysis Exampled of RBL Bank Ltd. Here's a breakdown of the wave counts as illustrated in the chart: Impulse Wave 1 - 5 as a bigger degree wave (3) - Starting from the bottom left, the stock initiates an upward movement labeled as waves (i), (ii), (iii), (iv), and (v), culminating in a larger degree Wave (3). This indicates a bullish impulse wave consisting of five sub-waves. Corrective Wave W-X-Y Correction as a bigger degree Wave (4) - The chart shows a complex correction starting from top of Wave (3) with set of double correction as wave W-X-Y Current Market Scenario - Currently, the stock appears to be completing another corrective wave (Y), marked with sub-waves (a), (b), and potentially completing (c). of wave ((y)) of larger degree wave Y to finish one more larger degree wave (4). Can show some Dips to complete wave (4) along with Bullish Divergences. Future Projection Based on the Elliott Wave count, the stock seems to be in the final stages of completing Wave (c) of ((y)) of Y of (4). After this correction, it is anticipated that a new impulsive wave cycle might begin, potentially forming Wave (5) of a larger degree. The projected target for this next upward wave, post-correction, could reach above the previous high near the 300 level or more. By understanding these principles and analyzing the provided chart, traders can gain insights into potential market movements and make more informed trading decisions. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NSE:RBLBANKEducation
by RK_Chaarts
10
Elliott Waves: Natural Gas case study Overview: Since the significant bottom in June 2020, Natural Gas embarked on a compelling journey, forming a fresh impulse that concluded around the highs of August 2022 as Wave I in the Cycle Degree. The subsequent phase witnessed a corrective move, labeled as Wave II on the weekly timeframe, comprising three subdivisions: ((A)), ((B)), and ((C)). The current focus is on the ongoing Wave ((C)) on the Daily timeframe, expected to unfold in five subdivisions: (1), (2), (3), (4), and (5). Within this framework, Wave (1) to (4) are complete, and attention now turns to the unfolding of Wave (5) on the Four-Hourly timeframe. Current Structure: On the Four-Hourly timeframe, Natural Gas is in the process of forming Wave (5), consisting of Wave 1, 2, and the ongoing development of Wave 3. The details of Wave 3 are further observed on the Hourly timeframe as finished wave ((i)) & ((ii)) and now possibly we are unfolding Wave ((iii)) of 3 of (5) of ((C)) of II. Elliott Wave Principles: Corrective Structure: Wave II is corrective, manifesting as a complex correction with three subdivisions, labeled ((A)), ((B)), and ((C)). Impulse Formation: The primary upward movement from June 2020 to August 2022 represents an impulse, characterized by a sequence of five waves. Subdivision Details: Each wave and subdivision unfolds according to Elliott Wave principles, maintaining the structural integrity of the overall pattern. Learning Points: Analyzing Market Cycles: Elliott Wave Analysis serves as a valuable tool for understanding the cyclical nature of markets, providing insights into the psychology of both buyers and sellers. Trend Anticipation: Corrective waves within the Elliott Wave framework offer a strategic opportunity to foresee potential trends—whether they signify a resumption or reversal of the existing trend. Elliott Wave Analysis is a tool to decipher market cycles, offering insights into the psychological dynamics of buyers and sellers. Corrective waves provide an opportunity to anticipate trend resumption or reversal. The principle of non-overlapping waves helps identify the structure of the market move. Validation and Risk Management: The integrity of this Elliott Wave structure is contingent on Wave II not surpassing the low of Wave I, identified at $1.440. A breach of this level would invalidate the current wave count. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NYMEX:NG1!Education
by RK_Chaarts
20
Mastering Elliott Wave: The importance of channelingI wanted to share my thoughts on the significance of using channeling technique in Elliott Wave theory when analyzing charts. To begin, we draw what we call a "base channel," starting from the beginning of wave 1 and extending it to the end of wave 2. This initial channel provides us with a foundation for analysis. The following occurrence of an impulsive breakout beyond this channel signals the initiation of wave 3. At this point, we create a new "Acceleration Channel" to track the movement of wave 3. If this newly drawn channel is breached to the downside, it suggests the possibility of a correction for wave 3 underway. As seen in the picture, the original base channel we drew earlier now acts as a support level for wave 4, accompanied by consolidation around Fibonacci levels. This observation has been witnessed numerous times in the past. When the corrective channel experiences a breakout with above-average volume, it serves as a signal indicating the completion of wave 4. This event provides an opportunity for us to establish Fibonacci targets for profit-taking. In this particular example, I have chosen to draw the corrective channel only on the final leg of the ABC correction, enabling us to catch the breakout at an earlier stage. A more conservative approach, however, would involve waiting for the breakout to occur after wave B has been surpassed. Hope this was helpful for those wanting to learn more about channeling and Elliott Wave.
TVC:GOLDEducation
by Ingvar77
Part [A] Basic of Wave PrincipleElliott Wave background In the 1930s, R.N Elliott identified the price of the stock trends and reversed a specific pattern. This pattern is repetitive in form and, the patterns have predictive value. He decided to use this pattern (Elliott wave theory) to predict the market. The Elliott wave is not primarily a trading system. It is a detailed description of how the market acts. The Elliott wave is part of technical analysis. Also, the Wave principle is the reassembled form of dow theory. -Elliott Wave Principle The key To Market Behavior] Waves in the market? We all know that price never moves in a straight line. It will neither fall in a straight line nor rise in a straight line. Price will create highs and lows. And this high and low creates waves. Elliott wave theory is all about counting waves and, we are going to use the Elliott wave to trade the market. Now, the concept of waves is acceptable for you. Elliott wave theory is made of 5+3= 8 waves. Let me show you that structure in both trends. In bull market ( UP Trend ) : Figure 1.1 This is the Elliott wave structure in an uptrend. As we discussed, Elliott's wave theory is made up of 5+3=8 waves. Where five waves move with the trend and three waves move against the trend. In Bear market (downTrend) Figure 1.2 This is an example of Elliott wave theory in the Bear market. We can see that five waves move with the trend and, three waves move against the trend. Take a deep breath, I know you have lots of doubts in your mind. Let me solve some. 1. Elliott wave theory works in any time frame. 2. These 5+3=8 waves will give us a market edge. It will provide strong trends & trend reversals. 3. The accuracy of Elliott wave theory is 84% of you are using the wave principle correctly. Practical Example of Elliott wave theory : In the Bull market : Figure 1.3 This is the TATA MOTORS 4 hour timeframe chart. I used bar charts because It is easy to recognize Elliott's waves in bar Patterns. Well, it works for me to recognize if you feel that you can recognize patterns in another chart, go ahead with bar charts! In Bear Market: Figure 1.4: This is the ITC daily time frame chart. It shows the beautiful Elliott wave structure in the Bear market. Elliott wave structure : Now, we all know that Elliott is made of a 5+3= 8 wave structure. So, Let's start getting into it! To understand the wave principle, we have divided the wave structure (5+3=8) into two Phases which are an Impulse phase/structure & a corrective phase/structure. Figure 1.5 This picture illustrates Two phases of the Elliott wave principle. The impulse phase is made up of 5 waves and, the corrective phase is made up of 3 waves. Figure 1.6: This picture divides the wave principle into two phases. 1. Impulse phase/structure ( which includes five waves and, which moves with the trend you can see in bull market impulse phase is going upward and in a bear market, impulse phase is going down which is directional move.) & 2. Corrective Phase/structure ( which includes three waves and which moves against the trend, you can see that in bull market corrective phase is going downward and In bear markets, the corrective phase is going upward, which is a counter-trend move. Figure 1.7 , Elliott wave has 2 phases. motive/Impulse phase ( directional move ) and corrective phase(counter trend move). We can divide these 2 phases into two types of waves. Impulsive waves and corrective waves. Let’s zoom in on the impulse phase to understand the underlying structure and wave behavior. Motive/Impulse Phase : Important things about the impulse phase 1). Motive/Impulse phase is a Five wave structure that includes wave1,2,3,4 & 5. 2). motive/Impulse phase is a directional move ( moves with the trend.) 3). The Ending point of the impulse phase is the starting point of the corrective phase. 4). motive/Impulse structure is powerful than corrective structure. 5) Impulse phase can divide into two types of waves i) Impulse waves: 1, 3,5 ( move with Trend of impulse Phase ) ii) Corrective waves: 2,4 ( Moves against the trend of Impulsive Phase) Let me give you a quick understanding because we are going to cover these waves in-depth, Impulsive waves are trend-following moves. We can find this type of wave structure in both phases. Impulsive waves create trends. Impulsive waves are (1,3,5,A,C). Corrective waves are counter-Trend moves. We can find this type of wave structure in both phases. Corrective waves provide pause to continue the trend, Corrective waves : (2,4,B) Motive/Impulse Phase in Bull market Figure 1.8(A) , wave 1,3,5 is an impulsive wave of impulse phase because The trend of impulse phase up and, Impulsive wave are following the trend and heaving upward move. And wave 2,4 is the corrective wave of an impulse phase because the trend of the impulse phase is up but, the corrective wave is moving down, which is against the trend. Figure 1.8(B) , wave 1,3,5 is an impulsive wave of impulse phase because the trend of Motive/impulse phase down and Impulsive wave are following trend and heaving downward move. And Wave 2,4 is the corrective wave of an impulse phase because the trend of the Impulse phase is down but, the corrective wave is moving upward, which is against the trend. Corrective Phase/structure : Important things about the impulse phase 1). The Corrective Phase is a three-wave structure that includes waves A, B, C. 2). The corrective phase is a counter-trend move ( moves against the trend.) 3). The Ending point of the corrective phase is the starting point of the Impulse phase. 4) correction phase can divide into two types of waves i) Impulse waves: A, C ( move with Trend of correction Phase ) ii) corrective waves: B ( moves against Trend of correction Phase ) Corrective Phase in a bull market: Figure 1.9(A) : wave A, C is the impulsive wave of the Correction phase because the trend of the correction phase is down and Impulsive waves are following the trend and heaving downward move. And Wave B is the corrective wave of a Correction phase because the trend of the Corrective Phase is down but, the corrective wave is moving upward which is against the trend. Figure 1.9(B): wave A, C is the impulsive wave of the Correction phase because the trend of correction phase Up and Impulsive waves are following the trend and heaving Upward move. And Wave B is the corrective wave of a Correction phase because the trend of the Corrective Phase is Up but, the corrective wave is moving down, which is against the trend. Impulsive wave structure: 1. Impulsive waves are directional moves that are bigger than corrective waves. 2. Impulsive waves create trends. 3. Impulsive waves are subdivided into five waves. ( that means wave 1,3,5, A, C which moves with the trend will have five sub-waves.) 4. Impulsive waves are easy to recognize. (Impulsive waves can also be called motive waves) 5. Ride of impulsive wave can give us a high probability trade setup with high Rewards We are going to cover impulsive wave formations in the next part. (diagonals,extensions,Impulse,Truncation) Figure 1.10: As we discussed, Impulsive waves subdivide into five waves. Here wave 1,3,5, A, C has five subwaves which you can see in the chart. See you in the next part. @forextidings
BITSTAMP:BTCUSDEducation
by forextidings
2
How to Count Waves Using Chart Patterns?We can count waves using traditional patterns like Head and shoulders, Double Top and Bottom, Triangle, cup & handle, etc. This article is about how you can count waves by identifying chart patterns. I have covered Three chart patterns in this article, 1) Triangles 2) Head and shoulders 3) Double Top and Bottom 1) Head and shoulders: In addition, the two lows formed when the price failed to rise and fell back down were basically at the same level. The horizontal line is often referred to as the "neckline" When the price fails to fall back for the third time neckline will break. So "head and shoulders" was officially established. Changes in volume with head and shoulders: During the formation of "head and shoulders", the left shoulder has the largest volume, the Head has a slightly smaller volume, and the right shoulder has the smallest volume. The phenomenon of diminishing trading volume shows that when the stock price rises, the chasing force is getting weaker and weaker, and the price has the meaning of rising to the end. Operation plan after the Head and shoulders appear: When the head and shoulders formed, you can decisively follow up the short order. The formation of the head and shoulders indicates the beginning of a new round of decline in the market, and the minimum drop is the distance from the head to the neckline. The profit is very substantial. Therefore, studying the formation of the Head and Shoulders is also a necessary analysis process for band enthusiasts. Wave Count: The left shoulder: wave 3/A. The first touch on the neckline: wave 4/B Head: wave 5/C The second touch on the neckline: wave A/1 The right shoulder: wave B/2 The ending point of the right shoulder: wave C/3 2) Triangles: These are the most commonly used triangle patterns. In this motion, we are going to understand the triangle in terms of the Elliot wave. We'll be talking about the classical triangle pattern in an upcoming educational series. Wave Count: A triangle forms in corrective waves. There are Four corrective waves in Elliott wave theory. The corrective waves are 2,4, B, and X. There are four waves in a triangle which are A, B, C, D, E. The starting point of wave A of the triangle is the ending point of impulsive wave 1/3/A/W. After the completion of wave E of wave 1/3/A/W, the Impulsive wave will initiate. 3) Double Tops and Bottom: In the chart, you can sometimes see the stock price fluctuations. The stock price fell back after reaching the highest price. After some sorting, it rose again to near the previous stock price level and then fell back. Two "normally highs" The high point is formed on the circuit diagram and will not be seen again in the short term. Wave Count: In a Bull market, The first Top of the pattern represents the completion of the impulsive wave. The ending point of the Impulsive wave is the starting point of the corrective wave. I started the wave count from the first Top and labeled it as A, B, and C waves. In a Bear Market, The first Bottom of the pattern represents the completion of the impulsive wave. The ending point of the Impulsive wave is the starting point of the corrective wave. I started the wave count from the first Bottom and labeled it as A, B, and C waves. After wave C is complete, we can ride the impulsive waves.
NASDAQ:TSLAEducation
by forextidings
3
Depth of corrective waves. Elliott Wave.Elliott Wave Guidelines: Depth of Corrective Waves Understanding Elliott Waves is much more then the basic rules and 3s and 5s. A largely underused aspect of Elliott Waves is the Elliott Wave Guidelines. These go beyond the guidelines for each specific pattern and are meant to assist in determining the most probabilistic wave pattern. This is just the primary guideline of this larger Elliott Wave guideline. If you have found this inspiring/helpful, please consider a boost and follow! Also, check out the links in my signature to get to know me better! Cheers!
Education
by CryptoKnee
How to trade the Elliott wave triangle correction?Triangles seem very easy to trade but act differently when it comes to trading. #Elliottwaves have a very important, genuine, consolidated and beautiful pattern that is #triangle correction. The structure of the triangle is 3,3,3,3,3. It means the triangle has 5 waves in it and each wave is sub-divided into 3 waves which we call (a,b,c,d,e). After 5 waves the triangle should have to burst out in the direction of the main trend. In a special case, when a limiting triangle occurs, it made 9 waves all of 3 sub-waves. i.e. 3,3,3,3,3,3,3,3,3. An Elliottician thinks that it is easy to judge when the triangle finishes its 5 waves and we can play a move along with the trend. But ain't that easy. Most of the time, two types of problems a trader faces while dealing with the triangle. A triangle in the Elliott wave which has 3 sub-waves in all 5 waves usually has a zigzag correction in it, but inside that Zigzag, wave B can be expanded flat. It always creates an illusion that the triangle is over whenever an expanded flat is formed, and an expanded flat is made in wave c of the triangle. A good trader is one who doesn't lose patience and sees the triangle bursting before its actual ending. With this false wave count, sometimes a trader's stop-loss doesn't get hit, but it takes too much time to actually complete the triangle. So, for an option buyer, this false illusion can be a death to the trade as all the premium will decay if he enters too early in the triangle. As shown in my attached previous analysis of #HDFC , there is no genuine way to know from where the actual triangle starts in the Elliott wave. When the correction starts, the first leg can be a wave A of Zigzag, and the triangle can occur in wave B of Zigzag. The other alternative is the whole move is the triangle which starts from wave A and will end at wave B Now, the first leg i.e. wave A of Zigzag is also a 3 wave move. So, it is difficult to make sure if the whole move is a triangle or if the triangle is in wave B of Zigzag. So, the best way to trade a triangle is to be patient first of all, and trade only when the price breaks out from wave D. It will save a lot of your time and money. The technical analysis is all about the Price and Time as well. Happy Trading!
HEducation
by tradersmantra
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
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
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
Trading Chaos Part 5 | CorrectionsHello, everyone! Last time we considered the Elliott waves 1-2-3-4-5 cycle. Today we are going to talk about correction types. Corrections contains of 3 waves A-B-C. Bill Williams recommends to trade only Simple Zigzag corrections, but we also should be able to distinguish other types of corrections. Let's go! Simple Zigzag Correction If you find that the corrective Wave A consists of 5 waves there is a high probability that current correction type is simple zigzag. If you decided to trade this correction, you should wait the Wave B end and execute the short trade. How to spot it's end? Find the target zone, usually it is between 50% and 62%, one of the three bars on the top should be the squat bar. Also you should find the fractal on the top.
Education
by Skyrexio
1
💨𝙀𝙒 𝙋𝙖𝙩𝙩𝙚𝙧𝙣: 𝙈𝙪𝙡𝙩𝙞𝙥𝙡𝙚 𝙕𝙞𝙜𝙯𝙖𝙜🌊●●● 𝙈𝙪𝙡𝙩𝙞𝙥𝙡𝙚 𝙕𝙞𝙜𝙯𝙖𝙜 (Mult.Z) Keep in mind that an triple zigzag is rare ❗❗ 𝙍𝙪𝙡𝙚𝙨 ● A Multiple Zigzag comprise two (or three) single zigzags separated by one (or two) corrective pattern(s) in the opposite direction, labeled X . In the first case, it is called «double zigzag», in the second - «triple zigzag» (The first single zigzag is labeled W , the second Y , and the third, if there is one, Z .) ● Waves W , Y and Z are always single zigzags . ● Wave X never goes beyond the beginning of waves W and Y . ● Wave Y always ends past the end of the W , and wave Z , if any, always ends past the end of the Y . ● The first X wave always ends on the territory of the W wave, the second X , if any, on the territory of the Y wave. ● In a triple zigzag, the first X wave is always a zigzag, flat or combination . The second X wave is always a zigzag, flat , triangle or combination . ● In a double zigzag, wave X is always a zigzag, flat , triangle , or combination . ● Double and triple zigzags replace single zigzags , but cannot appear as W , Y , or Z waves. ❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ●In a double zigzag, wave Y can equal wave W , .618 wave W , 1.618 wave W , or .terminate at a distance equal to .618 wave W past wave W . In a triple zigzag, there can be equality among waves W , Y and Z , or wave Z can equal .618 wave Y , 1.618 wave Y , or .terminate at a distance equal to .618 wave Y , past wave Y . In a triple zigzag, the Fibonacci relationships between waves W and Y , would be the same as a double zigzag. ● The Fibonacci relationships between waves W and X in a double zigzag, and waves Y and XX in a triple zigzag are analogous to the relationships between waves A and B in a single zigzag . ● In a double zigzag, as a guideline, wave b of wave Y should not break the trendline that connects the beginning of wave W with the end of wave X . ● As a guideline, wave X (second wave X of the triple zigzag) of a double zigzag should break the trend channel formed by the first zigzag in wave W ( Y ) and be greater than 80% of subwave b of wave W ( Y and Z ). ● When a zigzag appears too small to be the entire wave with respect to the preceding wave (or, if it is to be wave 4 , the preceding wave 2 ), the complication of the structure to a multiple zigzag will probably follow. Elliott Wave Principal 2005 and Q&A EWI .
BITSTAMP:BTCUSDEducation
by TradeWaves-EWA
5
💨𝙀𝙒 𝙋𝙖𝙩𝙩𝙚𝙧𝙣: 𝙎𝙞𝙣𝙜𝙡𝙚 𝙕𝙞𝙜𝙯𝙖𝙜🌊●●● 𝙎𝙞𝙣𝙜𝙡𝙚 𝙕𝙞𝙜𝙯𝙖𝙜 (SZ or ZZ) ❗❗ 𝙍𝙪𝙡𝙚𝙨 ● A zigzag always subdivides into three waves. ● Wave A always subdivides into an impulse or leading diagonal . ● Wave C always subdivides into an impulse or ending diagonal . ● Wave B always subdivides into a zigzag, flat , triangle or combination thereof . ● Wave B never moves beyond the start of wave A . ● Wave B always ends within the price territory of wave A . ● Wave C almost always ends beyond the end of wave A . (failure to comply with this requirement is called «truncation» * * Guideline, but should be followed as a rule ❗ 𝙂𝙪𝙞𝙙𝙚𝙡𝙞𝙣𝙚𝙨 ● Wave C should not fail to reach the end of wave A by more than 10% of the length of wave A . ● In a zigzag, the length of wave C is usually equal to that of wave A , although it is not uncommonly 1.618 or .618 times the length of wave A (rarely 2.618 ) ● Wave B typically retraces 38 to 79 percent of wave A . ● If wave B is a contracting triangle, it will typically retrace 38 to 50 percent of wave A . ● If wave B is a running contracting triangle , it will typically retrace between 10 and 40 percent of wave A . ● If wave B is a zigzag, it will typically retrace 50 to 79 percent of wave A . ● In a zigzag, if wave A is a leading diagonal , then we would not expect to see an ending diagonal for wave C . ● A line connecting the ends of waves A and C is often parallel to a line connecting the end of wave B and the start of wave A . (Forecasting guideline: Wave C often ends upon reaching a line drawn from the end of wave A that is parallel to a line connecting the start of wave A and the end of wave B .) Elliott Wave Principal 2005 and Q&A EWI.
BITSTAMP:BTCUSDEducation
by TradeWaves-EWA
4
SSIA idx stock :Example of Complex Correction Wave 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 a-b-c (x) and last, completed with zigzag a-b-c (z). This educational analysis provided also with example entry strategy, my entry strategy placed on top of last wave 4, why? Well, it gives slight confirmation that the (z) wave of zigzag is completed. The stop loss placed on the very bottom of (z), which means the invalidation zone. Apparently, this strategy only compatible for a long term investing. This educational analysis is not a financial advice, you should do your own research and always make sure to criticize before consummation. And last, because the asset is stock, always compare with the fundamental condition of the company. Thank you, share and like if you found it helpful!
IDX:SSIAEducation
by danuto17
[EW COURSE] IMPULSIVE WAVES SETUPBEST PLACE FOR ENTRY AREA ============================ CR1 = Research for BUY OPPORTUNITY on W(2) and W(4) CR2 = Research for BUY OPPORTUNITY on W(2) and W(4) CR3 = Research for BUY OPPORTUNITY on W(4) CR4 = Research for BUY OPPORTUNITY on W(2) and W(4) CR5 = Research for BUY OPPORTUNITY on W(2 ) and W(4) CR6 = Research for BUY OPPORTUNITY on W(2) and W(4) CR7 = (We don't trade it) CR4 = Research for BUY OPPORTUNITY on W(2 ) and W(4) FAIL IMPULSIVE WAVE: - W(3) OVERLAP W(1) - W(3) CLOSE BAR BELOW W(1) HIGH EW GLOSSARY =============== If you think this analysis can be useful, leave a your comment or your ILIKE! Thank you for support and trade with care!
Education
by TheAnonymousBanker
13
[EW COURSE] FLAT CORRECTIONTYPES FLAT CORRECTION WAVES: There are three predominant types of flat corrective waves. These include: Expanded flat: This is arguably the most common flat wave formation and occurs in the second and fourth wave of an impulse wave. What connects the expanded wave to the initial impulse wave is a zigzag or other types of triple or double connection. In a bullish market, the price of the underlying asset moves against the trend to form a 3-wave shape. In an expanded flat wave, wave B also appears in a 3-wave structure and goes beyond the start of wave A, while wave C extends beyond the end of wave A. The expanded wave is also known as an irregular flat although this term can be misleading as the expanded wave appears more often than other types of waves. Regular flat: In a regular flat correction, wave B ends slightly at the start of the wave A while wave C ends just beyond the end of wave A. Running flat: A running flat wave is a 3-3-5 wave. Here, wave B terminates past the start of A wave and C stops almost close to the end of wave A. The formation of a running flat is quite rare. The difference between the expanded flat and the running flat is the point at which wave C stops. In an expanded flat, Wave C ends beyond the end of wave A. All in all, each type of corrective flat is essentially an ABC wave with a 3-3-5 sub-waves or configuration. It is also important to note that these types of corrective flats go against the trend of the impulse wave, one degree higher. Thank you for your support! HARMONIC CORRELATION
Education
by TheAnonymousBanker
17