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 )
Elliottwavecorrection
APE ANALYSISAPE is interestingly forming a corrective Elliot wave 2 pattern on the 4 hours timeframe.
The "d" is the next resistance target after which a retracement to "e" (support) will occur before we could see a new "ALL TIME HIGH".
You can buy around $12 - 12.25, set your stop loss at $11.82 and take profit at $13.10 - 13.4 for quick profit.
If all analysis fails, (which is very, very unlikely) then we will see a retest of the 0.78% Fibonacci retracement level around $9.4.
Bitcoin chart analysis - still in huge correction until 2023I think these 3 Elliot scenarios could be real deal. It really matters how the market will behave, if there will be more selling pressure we will se another low around 27k area, then uptrend towards 40-45k and there will be decided if we are going for expanded or running flat. I hope in expanded so we could sell our BTC:)
im not financial advisor btw
EURNZD Trade Idea - Elliott WaveLet’s discuss the price chart of the EURNZD currency pair based on the 120 minute timeframe.
From the Elliott Wave perspective, the price action is moving in a corrective channel within Wave (iv). It is approaching a critical Fibonacci retracement level of .618 which should act as resistance.
From the Hurst Cycles perspective, the composite model line which measures the combined cyclical pressure, topped on April 1st (red vertical line), and is projected to form a bottom on April 25th.
Based on this, we can expect prices to break below the corrective channel and head lower from there. Beyond that the low of Wave (iii) will act as an important support level, however, this leg down which would be wave (v) should ultimately break below this level.
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MSFT: Sell Zone is 325-330MSFT is finishing up its 4th wave pullback. Mega caps don't typically experience deep retracements, so the .382 retracement is the perfect buying zone. In the next day or two MSFT will resume its uptrend to complete its 5th wave up to the $325-$330 region. After that, MSFT will experience a 2nd wave pullback to approximately today's levels.
US30 Dow JonesDow jones looks like we have completed the 1st impluse wave , so i feel we need some correction towards my target then we will be moving towards the upside high highs boom !
Elliott Bitcoin Analysis1- Bitcoin has entered a correction wave.
2- Wave B was a triangular wave that had ended.
3- Wave C has started and the price is expected
to move as much as the wave A (PRZ 2) .
4- In the most optimistic case, the price of ABC
correction wave is expected to correct as much as
61.8% of all 5 previous uptrend waves, which will
be exactly in line with the floor of the long-term
uptrend channel for several years (PRZ 1 ) .
FB: Buy zone is 205-210FB just completed a 5-wave move off the low. This is a good sign that the stock has indeed bottomed. What comes next is the W-2 pullback. The standard fibonacci retracement targets for a pullback are .5 and .618, which translates to a buy zone of 205-210. There are also bearish divergences in MACD and RSI, indicating that the uptrend is exhausted. I do not own shares of FB, but if I did, I would be selling covered calls against my shares to protect my downside over the next week or so. FB should reach about the $300-$350 region this year.
LUNA / USDT ELLIOT WAVE LUNA / USDT ELLIOT WAVE
Impulse dalgasının ABC düzeltmesi bitmiş ve öncül Diagonal olmuş gibi duruyor , bu yeni bir Impulse dalgasının 1 dalgası olabilir. Eğitim amaçlıdır yatırım atvsiyesi değildir.
ABC Flat, wave 4 macro finished?I'm still having this possible scenario. The bullish structure of the new impulse upwards from January 24th is only valid if we don't go below these levels we are now. Losing them will send us at least to those low levels again to finish the 5th wave down of the ABC the correction.
ALLY Wave 4 Completed?Hello everyone, I wanted to share with you all what I'm seeing with ally. I believe Ally has completed a flat wave 4 correction. I have outlined 2 pink lines, one will invalidate the flat correction thesis and the other will validated. In other words if Ally breaks and closes below $44 the pattern will be invalidated and a larger correction will probably be in play ; on the other hand if ally breaks and closes above $49 the pattern will be valid and longs should be considered. I hope this helps some of you. I'm not a financial advisor, I'm only sharing what I'm doing. Good luck everyone!