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5-wxy

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
Massive Swing Opportunity on XAUUSD (Gold) Hi Trader, please look at my attached idea to get all the informations you need for the trade. We had a massive buying movement on yesterdays NY session which led us to new highs. Nonetheless I am still seeing a possible bearish outlook which would lead us to 1680s area once again, before we see the bearish case to be invalidated. This is due to daily timeframe which printed an obvious Zig Zag correction of the previous bearish movement from top at 1830 area. Looking at the inner wave structure of the bearish sell-off, it gives me reason to think that we may be in multiple Zig Zags, which would then lead to more selling pressure towards 1680s. That said, we are going to play this short very tight since this idea can be invalidated with new highs above yesterdays session. That way, we will have tiny losses in comparison to what we are able to achieve. Also, we'll be forced to cut our positions due to invalidation and reflect once again what is going on with XAUUSD. We wish you all the best! RL from RT_Trading_
OANDA:XAUUSDShort
by RT_Trading_
8
SPX. Elliott wave 101 rare structure explained, WXY & WXYXXZ !!!We are in a double or in a triple & I am still learning guys, so if i make a mistake here or there i would be very thankful if you point it out for me -------------- ---Combination corrections are also viewed as complicated and complex, but there is really no need to overthink it. Combination corrections in simple terms: 2 or 3 corrective patterns joined together by a 3 wave move. ---Example: Double Correction A double correction as shown above, is simply (any corrective pattern + 3 wave move + any corrective pattern) and labeled WXY ---Example: Triple Correction A triple correction as shown above, is (any correction + 3 wave move + any correction + 3 wave move + any correction) and labeled WXYXZ. The only condition is that Y must not exceed the 1.618 extension of wave W, or it is likely part of an impulse wave down.
SP:SPX
by samitrading
2