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Wave Analysis

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
BITCOIN IS THIS BOTTOM OR JUST STARTING At the outset, I would like to inform you that I have been a big fan of the wave theory in the last five years, but in science there are no feelings and biases, as well as in markets, and also the theory has not reached the limit of idealism and some critics say that it did not reach the limits of theory, it is only a hypothesis and It has been going on for such a long time because of its many possibilities. anyway , this discussion will be as simple as possible and easy for the public to understand, even non-specialists, and from them I will present some scenarios that I see as possible to happen on the Bitcoin chart. # The first scenario: Have we finished the FLAT and are heading to ATH ???!!!! I wish if the answer to this question was clear and certain , this perception takes the third place out of four, and the reason for this is the downward wave from the top of 69 to the current levels not clear five wave . Well, according to this scenario, the end of the correction is expected at the 23k, from which we start a new bull market (remember this scenario takes the third place among the possibilities) The second scenario: It is a rare but possible pattern, like what happened in the Dow Jones Index in 1966, which is the expanding triangle In the wave principle, there are four triangular patterns(Without counting the irregular top) , and the below chart shows the expanding pattern, and it may develop and change into a second type of the family of triangles. One must be careful that the triangle is one of the most difficult patterns to anticipate early, and its volatility is very high. There may be some intellectual fanaticism on the part of some wave analyzers regarding the internal structure of waves. they assert that they be from the zigzag family, and this condition is not true The third and fourth scenarios: They are the most important and most likely, which is that the wave from 69 to the current price is the first corrective wave of the model and it is formed with a 3 waves structure that is very satisfactory to the rules and guidelines, anyway, the main reason for my preference for this scenario is to study time cycles (note that time cycles are more scientific and have been worked on a lot), so since we are in the A wave of the structure and this wave was 3 waves , so the possibilities will be limited to that the pattern It evolves and takes a flat or develops and takes a triangular shape and the balance tends to the triangular model due to the economic and global conditions I know that this perception of the next movement is boring and takes the sideway character (and sorry, but your Lamborghini will be delayed this time ) and the correction may end in the first quarter of 2024, but remember the markets are not devoid of opportunities Well, what do we gain after all this talk showing charts ?? It is very simple and here lies the strength of the wave theory, so that all the mentioned scenarios agree in the upcoming movement, which is the rise to the levels of 48-50 thousand. This wave at least gives twice the profit without using the leverage, and what do you expect to happen to the rest of the alt coins in this rally : ) I wanted to post some mysterious Fibonacci sequences for Fibonacci fans but it might take a lot of time Anyway, a little advice from me Life is more beautiful than the trading markets, do not be addicted to the price movement and lose the most valuable thing you have (your time) I wish luck to everyone My greetings
INDEX:BTCUSDEducation
by DARKMEX
8
How To Analyze Any Chart From Scratch - Episode 5Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. Today we are going to go over a practical example on BTC, but you can apply the same logic / strategy on any instrument. Feel free to ask questions or request any instrument for the next episode. You can find the previous episodes below "Related Ideas" Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
BITSTAMP:BTCUSDEducation
by TheSignalyst
41
COMPOUND INTEREST | Time is on your side📚 ❗️As it turned out, not all traders are familiar with such an important concept as compound interest. Meanwhile, the use of compound interest in trading can be a very effective tool for making a profit. In short, compound interest is the accrual of interest on interest, and if in detail, then read on. ✅The formula for calculating compound interest has the form: Compound percentage = (P (1 + g)^ n) – P, where P – the amount originally invested; r – interest rate; n is the investment period. Let's say you invested an amount of $ 10,000, every year the interest received is added to the principal amount, and new interest is accrued for a larger amount. If the investment period is 5 years, and the interest rate is 10% per annum , then after the specified period, taking into account the compound interest, you will receive a profit in the amount of: (10000(1+0.10)^5)-10000=6105.1$ And without taking into account the compound interest, the profit for the same period will be: 1000050,10-10000=5000$ As you can see, using compound interest (or in other words reinvesting profits) brought additional income in the amount of: 6105.1-5000 = 1105.1 $. ✅It seems that the figures presented above are not impressive, but the use of compound interest in trading can truly work wonders. In what way? Let's take another look at the compound interest formula described above. It is obvious from the formula that you can increase profit by increasing any of its components. Let's not touch the amount originally invested, but play with the value of the investment period and the interest rate. To begin with, let's imagine that we will reinvest the profit not every year, but every month. Then the investment period will be 12 5 = 60 months. The interest rate corresponding to this investment period will be equal to: 10%/12=0.833%. Let's substitute these values into the formula for calculating the compound percentage: (10000(1+0.00833)^60)-10000=6449,8$ As you can see, under the same conditions, but with monthly reinvestment of profits, the income will already be $ 6449.8- $6105.1 =$344.7 more. Well, if the trader's income is not 0.833% per month, but, for example, 5% monthly, then under the same conditions and for the same period, the profit will already be: (10000(1+0. 05 )^60)-10000=176791,86$ Felt the difference, impressive, isn't it? And what if you reinvest profits not monthly, but daily? Let's figure it out. With an average yield of 5% per month, the average daily yield will be 5%/21= 0.238% (here 21 is the number of working days in a month). The investment period will be 5360=1800 days. Let's substitute the data into the compound interest formula: (10000(1+0.00238)^1800)-10000=711617,5$ This is already 711617.5-176791.86 = 534826 $ more than with monthly reinvestment of profits. More than half a million dollars (and this with an initial investment of only ten thousand)! That's impressive. That's what compound interest is in action. ⚠️This is about theory. In practice, it is impossible to achieve a constant percentage of profit every day. Some days a trader inevitably ends up with a loss, some with a profit, and the size of these losses and profits is always different. So it is unlikely to substitute the value of the percentage of profit per day in the above formula. However, the very essence of compound interest, clearly shown above in figures, gives the trader a fairly powerful tool for earning. A trader can and should use compound interest when creating his own money management system. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
6
Market Cycles, Natural as Night and DayThis idea is For Educational Purposes Only This Is Not Financial advice Trading is Very Risky and You can lose Money I am Not a Professional Bitcoin has a beautiful rhythmic pattern, RN Elliot was the guy who taught us what it looks like. God bless that man Wave 1 is up, usually not that exciting Wave 2 is down, and is the place to buy, any crypto You like Wave 3 is up, everybody you meet is a "trader". mainly because the up trend make humans feel like they are smarter than they really are Wave 4 is down, this one is my favorite, It breaks the hearts and minds of all the greedy so called "traders", most lose their shirts Wave 5 is the final UP wave, this is where Alt Coins shine, they pop off like popcorn! CAUTION: Wave 5 does NOT last forever, when coins like XVG touch .30 cents/ Bitcoin Cash $4100. You will know its time to sell ALL Crypto WAVE 4 will touch 20k then its Game on for a while then a lot of down down down down for years... The overall Cycle correction is Long and predictable. it Must retrace below wave 4 by at least one degree Note: It took about 820 days for the last cycle to reach its wave 2 bottom, patience is required, Save your money!! Om Shanti My friends..
BNC:BLXEducation
by dualmass
5
The Characteristics of Corrective StructuresHi fellow traders, I would like to share with you all the characteristics of the most important structures when it comes to trading waves. When reading all the rules and guidelines of the Elliott Wave Principle it might be a little overwhelming and complicated for most traders. At least to me it was when I just started learning. For that reason I've tried to put it more in perspective by drawing all the patterns and making it more visual for everyone to understand. The notes are all included on the chart and I hope it helps you during your trading sessions. If there are any questions please feel free to comment, ~ OGwavetrader Follow our Tradingview account for more technical analysis updates Like, share and comment your thoughts.
Education
by OGwavetrader
9
Bearish Cyphery Pattern - Elliott Wave Analysis Bearish Cypher Pattern , in Elliott Wave Analysis is Irregular Flat Correction or Running Flat Correction Rules The B point stands at the end of the AB leg, which is a retracement of the XA leg. The B point must lie between a 0.382 and 0.618 retracement of the XA leg; The C point lies at the end of the BC leg and should be a 1.272 to 1.414 projection of the XA leg; Point D should be a precise 0.786 retracement of the line between X and C (XC). The D point is the end of the pattern.
NYSE:DSXEducation
by Trade_Your_Way
Bullish Cypher Pattern - Elliott Wave Analysis Bullish Cypher Pattern , in Elliott Wave Analysis is Irregular Flat Correction or Running Flat Correction Rules The B point stands at the end of the AB leg, which is a retracement of the XA leg. The B point must lie between a 0.382 and 0.618 retracement of the XA leg; The C point lies at the end of the BC leg and should be a 1.272 to 1.414 projection of the XA leg; Point D should be a precise 0.786 retracement of the line between X and C (XC). The D point is the end of the pattern.
NYSE:DSXEducation
by Trade_Your_Way
Bearish 5-0 Pattern - Elliott Wave Analysis The 5-0 Pattern has the following ratios. A no specific retracement level AB leg extends XA leg between 113% – 161.8% BC leg extends 0X leg between 88,6% - 113% 113% BC leg is also an extension of AB by 161.8% – 224% CD leg should to be 50% retracement of BC The first part of 5-0 Pattern is Shark Pattern. The A-B-C leg of Shark Pattern is in Elliott Wave (w) - (x) - (y), legs of Wave A from Flat Correction The second part of 5-0 Pattern is Shark Pattern is D. D leg in Shark Pattern, in Elliott Wave is Wave B , leg of Flat Correction That is mean after B we are waiting Wave C and then PRZ
TVC:DXYEducation
by Trade_Your_Way
1
Bullish 5-0 Pattern - Elliott Wave Analysis The 5-0 Pattern has the following ratios. A no specific retracement level AB leg extends XA leg between 113% – 161.8% BC leg extends 0X leg between 88,6% - 113% 113% BC leg is also an extension of AB by 161.8% – 224% CD leg should to be 50% retracement of BC The first part of 5-0 Pattern is Shark Pattern. The A-B-C leg of Shark Pattern is in Elliott Wave (w) - (x) - (y), legs of Wave A from Flat Correction The second part of 5-0 Pattern is Shark Pattern is D. D leg in Shark Pattern, in Elliott Wave is Wave B , leg of Flat Correction That is mean after B we are waiting Wave C and then PRZ
TVC:DXYEducation
by Trade_Your_Way
Setup Video for New Version of Bad Ass B-BandsHi Everyone! Give me about 10 to 15 minutes after posting this setup video to actually update the script; which will include this setup video in the description of the script. Thank you for your attention to detail, Josue. He has been a HUGE help with improving Bad Ass B-Bands. This update will show percentage for price in-crease and percentage for price de-crease. The first number will begin with an UP arrow; indicating price percentage INCREASE if price is going UP. The second number will begin with a DOWN arrow; indicating price percentage DECREASE if price is going DOWN. Happy Trading and Stay Awesome! David
Education
by WyckoffMode
10
How To Analyze Any Chart From Scratch - Episode 3Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. Today we are going to go over a practical example on SILVER, but you can apply the same logic / strategy on any instrument. Feel free to ask questions or request any instrument for the next episode. You can find the previous two episodes below "Related Ideas" Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
FOREXCOM:XAGUSDEducation
by TheSignalyst
27
ENGULFING CANDLE | powerful price reversal📚 ✅The engulfing model (external bar) is mainly a reversal pattern (although in rare cases it may indicate a continuation of the trend). It looks like two candles, the first of which is small, and the second is large, with a body larger than the entire previous candle, and directed in the opposite direction. ✅From the point of view of crowd movement, such a pattern means that the strength of the current trend is drying up (this is evidenced by the small size of the first engulfing candle). The crowd does not know in which direction to move and, figuratively speaking, is marking time. The appearance of a powerful candle that absorbed the previous one and closed in the opposite direction marks the beginning of a new, strong trend. ⚠️There are several mandatory conditions that the pattern must meet in order for its signal to provide the maximum probability of working out: 1️⃣Before the pattern itself, there must be a downtrend or an uptrend in the market. The movement may be small, but its presence is mandatory; 2️⃣The body of the second candle should be of a different color and orientation (bearish after bullish and bullish after bearish). Shadows may not be absorbed, but then the signal is considered weaker; 3️⃣The body of the second candle should have a contrasting color with respect to the body of the first. The exception is when the body of the first candle is very small (doji or close to it). ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
7
BTCUSD | What if...?Hello, dear TW community. Today I would like to introduce my "ridiculous hypothesis" about BTC. As we all know, "Elliot Waves" have 5 impulsive moves. If we look at 1M chart, we are easily to see that BTC has never been bear market at all, all humble blocks (2014-15, 2018) that it have been through so far I might call them as "corrections". What if BTC's real bear market comes every 10 years? Then, 1 BTC's worth is equal to me between $110-$1300 right today. Good luck in trades, buddy.
BITSTAMP:BTCUSDEducation
by maximleanke
12
Spread triple top and BottomThe normal triple top has no gaps between the tops. The same philosophy applies in this pattern as in the triple top. In each case, the stock rises to a certain price level and is repelled two times. The third attempt at that price is successful by the stock’s moving through the level shown by a column of X’s exceeding the point of resistance. since the stock was repelled twice at that same level, there are apparently sell orders there. The reason is not important. What is important is that there are sellers at that particular level. The only way to know if demand can overtake the selling pressure is to see how the stock negotiates the level again. simply stated, if the stock is repelled again at this level of resistance, the sellers are still there. You need not know any more. If the stock exceeds that level, then demand has overcome the supply that previously caused it to reverse. This is why we always wait for a particular level to be exceeded before we make a long or short commitment in the stock. Friends, I conduct training in an individual format and in a limited number of students, since a large number will interfere with my trading! The training course includes : The Wyckoff Method Demark method VSA A trading method tailored to your psychotype Psychology of trading For details, write in a personal message I can also introduce you to my own unique indicators , of my own design Wykoff Zone (You determine the activity and zones of smart money and also gives buy and sell signals ) is a Demark indicator that has no analogues on the platform - since most of the indicator are far from the essence of the Demark technique and are too simplified , which violates the basics of the principle For investors, I can shift a 2-week lazy investor course where you can learn how to invest correctly and in which stocks + the tic-tac-toe method supplemented with your own developments taking into account the imbalance of supply and demand
NASDAQ:NUROEducation
by StudentWyckoff
How To Analyze Any Chart From Scratch - Episode 2Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. Today we are going to go over a practical example on XRP, but you can apply the same logic / strategy on any instrument. Feel free to ask questions or request any instrument for the next episode. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
BITSTAMP:XRPUSDEducation
by TheSignalyst
77
BABA, a beautiful example of ANTI complete cycle !BABA is a beautiful example of ANTI complete cycle ! Many Elliott wave practitioners are not aware of different types of wave cycles ! They may consider themselves as a genius in a bull market ( As everyone else !! ) but suddenly thing change and they can not understand what is happening in a stock or market ! On the left side of the chart there is a schematic drawing showing an ascending complete cycle . In this well know wave cycle waves go up in 5 leg and go down in 3 legs. Correction will never go below the start of wave cycle in this type ( does it go in some other types? of course goes ) !!. Many investors and traders were hoping for this cycle ( and may be were not aware of alternatives ) in BABA, opened long position at the possible end of wave 4 at related retracement levels and now have lost huge amount of money !!! An ascending ANTI complete cycle is shown on the right side of the chart. In this cycle waves go up in 3 legs and go down in 5 legs and correction will never go below the start of the wave cycle. Does BABA play like this wave cycle? So far yes. Is there any other alternative ? Of course yes ! please note we have many other types of wave cycle and we just showed two of them here !. For example, we have neutral or descending antic cycles ( for example of descending anti cycle see my related idea about BROS stock ). It is worth to note many Chinese stocks like TIGR and XPEV showed anti cycles and this is not a surprise as BABA is leading Chinese stocks in the market. Things sound complicated? Yes they are ! but we can extract many useful tips among all these complications : 1. Overconfidence is dangerous ! always set stop loss . Things may change suddenly in a way that we did not predict. 2. Be mindful there are many types of wave cycles . Things are not as simple as they may seem at first look. 3. Do not jump blindly into a long position after apparent up going 1 2 3 form of wave ! 4. Retracement more than 50 % in what we consider a wave 4 is a dangerous warning. We can add many other implications to the list by thinking deeply about different types of wave cycles. Hope this publication to be helpful. Good luck every one !
NYSE:BABAEducation
by SaeedSajedi
4
btc usdt perp ending diagonal tutorialIn this tutorial I'll try and explain how to trade an ending diagonal. You would want to see a market that moves in converging channels(at times these can be too steep like those of rising/falling wedges). Next confirm 5 waves with respect to the channel. Waves 1, 3, 5 should make a triple top, whereas 2 and 4 are joined with one diagonal. Divergences are imperative as well, upon wave confirmation, the RSI divergence should support your bias, in this case, it's a medium bearish RSI, as the price rises, the oscillator remains holding the same region. The guidelines for entries and stop losses are simple. Wait for a break of wave 4's extreme and place the initial stop loss slightly above wave 5. At times there is a retest, which pulls back close to where the extreme of the 5th wave, which is ideal for entries and dcaing. Another approach is entering at wave 5. More often than not, wave 3 of an ending diagonal is shorter than wave 1, and wave 5 is shorter than wave 3, since wave 3 can never be the shortest among 1, 3 and 5. There are a lot of profit taking strategies out there. For this setup, I take profits as a whole rather than fib levels. A typical ending diagonal results in a correction(abc) that completely retraces it (i.e wave c terminates where wave 1 begins). Note: for ellioticians, you'll find that with ending diagonals, wave 4 gets into the territory of wave one, which is valid with ending diagonals and usually this is the case where 1>3 and 3>5. Now this is the setup in summary: 1) entry triggers: - ending diagonal - waves 1 - 5 - RSI divergence - triple top - breakout/breakdown 2) entry: (i) at break of wave 4 (ii) at wave 5 (aggressive approach) If opting for ii, make sure wave 1 is longer than 3 and 5 is shorter than 3 3) stop loss: slightly above wave 5( can be adjusted once significant gains have been made) 4) take profit: wave 2, let the price move till it's the same level as wave 2, otherwise use any profit taking strategy of your choice. 5) enjoy the profits ! That's it for this tutorial, take care and thanks for dropping by :)
Education
by initmx
A Comprehensive Guide to Elliott Wave Degrees (Timeframes)Hello Traders. In this supplemental post to my Elliott Wave guide, I will help you understand wave degrees, and what the numbers actually mean when you are labeling each wave. Identifying the wave level (degree) that you are trading is going to be identified at any given time and will be based on what's known as a "degree". One of the biggest problems that new Elliott Wave traders have is grasping the structure or "nesting" of the wave patterns (check the diagram within the chart above). The patterns identified by Elliott himself, occurs across multiple time frames. This means that a completed "five wave" wave structure on a smaller time frame, for example, the 15 minute chart, may represent just the first wave of a larger wave structure unfolding on a 60-minute chart, and so forth. In a micro-macro sense, each of the unfolding wave patterns is just part of a bigger wave pattern unfolding in the higher timeframes. The sequence from wave 1 through 5 completes one wave of a higher degree (again, refer to the diagram above), that is, a wave belonging to the next higher tier of wave sequences. The movements from wave 1 through 5 completes either a wave 1, 3 or 5 of the higher degree, while the a-b-c sequence completes either a wave 2 or 4 of the higher degree. When you are getting into lower degrees, each wave of the sequence can be broken down into smaller waves accordingly to the same dynamic (this is not so important as many claim to be). The most commonly used degrees are the Primary, Intermediate, and Minor degrees when labeling your micro-macro wave counts. In the diagram above you can see how Wave 1 of the high degree is made up of a smaller 5-wave impulse waves and Wave 2 is made up of smaller three wave corrective waves. And each of these waves is, in turn, always comprised of smaller wave patterns, and so forth.
BYBIT:BTCUSD.PEducation
by XForceGlobal
15
A Comprehensive Guide to Elliott Wave Rules & GuidelinesHello Traders. In this post I will be discussing every single Elliott Wave rule and guideline according to the Elliott Wave Theory. There are many confusions upon traders when applying Elliott Wave rules, as there are also guidelines to be considered when trading. ***RULES AND GUIDELINES ARE TWO DIFFERENT SET OF TOOLS!*** Elliott Wave Theory "Rules" MUST be obeyed, I repeat, they MUST be obeyed, and obeyed precisely for an Elliott Wave pattern to qualify as an Elliott "Wave" - However, the "Guidelines" do not have to be obeyed. The more Guidelines obeyed by an Elliott pattern, the higher its "rating" or "probability" of being correct. This guide is purely a supplement guide and a quick reference for ANYONE who is trying to remember the rules and guidelines. I hope this guide helps you to further advance into the Elliott Wave Theory. Please write in the comment section below if I have missed anything, I will be glad to add them in the update section. ------------------------------------------------------------------------------ We can categorize the Rules and Guidelines into TWO distinctive pattern groups: 1. Impulsive Wave Patterns (5 wave moves), and, 2. Corrective Patterns (3 wave moves) ------- **IMPULSIVE WAVES** Impulsive Wave Rules: •Wave 2 may NEVER move beyond the origin of wave 1 (it cannot retrace more than 100% of wave 1). •Wave 4 may NEVER enter the price territory of wave 1. •Wave 3 may NEVER be the shortest wave. •Impulse waves ALWAYS subdivide into 5 waves. •Waves 1, 3, and 5 are ALWAYS 5 waves. Impulsive Wave Guidelines: •Wave 3 most often exceeds the pivot of wave 1 •On rare occasion, wave 5 will not move beyond the pivot of wave 3. This is known as TRUNCATION (refer to my EW guide). •Usually, wave 3 will extend and have 5 waves within the third wave. Occasionally, two waves will extend (3rd and 5th waves). Never will all three extend. •When wave 3 extends, wave 5 tends to EQUAL in length with wave 1. •When wave 5 extends, it frequently reaches to the length of waves 1 plus 3. •Wave 1 is the least likely to extend, but can be valid. •Sometimes, the extended wave corresponds with the current parent wave. (for example, In a higher degree wave 5, it is common for the lower degree wave 5 to extend as well) •Sometimes, the extended wave will match the number of the current parent wave •The center of Wave 3, normally has the steepest slope of the entire 5 wave structure. •Wave 2 will develop into a ZIGZAG correction, FLAT, or a COMBINATION wave (WXY, WXYXZ). Wave 2 cannot be a triangle in its entirety. •Wave 4 will develop into a ZIGZAG, FLAT, COMBINATION (WXY, WXYXZ), or TRIANGLE. Diagonal Rules: a. Leading Diagonal b. Ending Diagonal A Diagonal is a common 5 Wave Impulsive pattern labeled as a 1-2-3-4-5 that moves with the larger trend (up or down). Diagonals move within two channel lines drawn from Waves 1 to 3, and from Waves 2 to 4. A Diagonal MUST be contracting. There exist two types of Diagonals; Leading and Ending. They have a different internal structure and are seen in different positions within the larger degree pattern. Ending Diagonals are usually more common than Leading Diagonals in terms of probabilities. •Wave 1 of a Leading Diagonal must be an Impulse or a Leading Diagonal. •Wave 1 of an Ending Diagonal must be a Zigzag family pattern. •Wave 2 may be any corrective pattern except a Triangle. •Wave 2 must be less than Wave 1 by price. •Wave 3 of a Leading Diagonal must be an Impulse. •Wave 3 of an Ending Diagonal must be a Zigzag family pattern. •Wave 3 must be greater than Wave 2 by price. •Wave 4 may be any corrective pattern. •Waves 2 and 4 must either overlap or be within 10% of length Wave 3 of doing so. All internal data points are considered. •The time taken by Wave 4 must be between 10% and 10 times the time taken by Wave 2. •Wave 5 of an Ending Diagonal must be a Zigzag family pattern. •Wave 5 of a Leading Diagonal must be an Impulse or Ending Diagonal. •If Wave 1 is a Leading Diagonal then Wave 5 cannot be an Ending Diagonal. •Wave 3 must not be shorter than both Waves 1 and 5. •Wave 5 must be at least 80% of Wave 4 by price. •Wave 5 is never the longest when compared with Wave 1 and Wave 3. •Wave 5 is always less than Wave 3 by price. •The intersection of the channel lines must be beyond the end of the pattern. •Diagonals must move within the two channel lines or be within 10% of gross movement. •Channel lines must converge, slope in the same direction and neither be horizontal. •The maximum number of pattern lengths into the future that the channel lines intersect is 4. •The minimum time for Wave 5 is 10% of Wave 4. The maximum time for Wave 5 is 5 times Wave 3. Diagonal Guidelines: •Wave 1 of a Leading Diagonal is usually an Impulse, but in rare cases may be a Leading Diagonal. •Wave 2 is usually ZigZag family pattern. •Generally Wave 2 is greater than 35% of Wave 1's total price movement. •Wave 4 is commonly a Zigzag. •It is rare that at least either Waves 2 or 4 of an Ending Diagonal is not a Zigzag family pattern. •Generally Wave 4 is greater than 35% of Wave 3's gross price movement. •The end points of Waves 1 and 4 generally overlap. •Expect the time taken by Wave 4 to be between 20% and 5 times Wave 2. •Wave 5 is usually greater than Wave 4 by price. •It is typical for Wave 5 of a Leading Diagonal to end before reaching the channel line. •It is typical for Wave 5 of an Ending Diagonal to exceed the channel line. ---------- **CORRECTIVE WAVES** ZigZag Rules: A ZigZag is a three wave structure labeled A-B-C, generally moving counter to the larger trend. It is the most common three wave Elliott pattern. Zigzags are corrective in nature. •Wave A must be an Impulse or a Leading Diagonal. •Wave B can only be a corrective pattern. •Wave B must be shorter than Wave A by price. All internal points are considered. •Wave B must be at least 20% of A by price. •Although there is no minimum time constraint for Wave B, it must not exceed 10 times the time taken by Wave A. Wave C must be an Impulse or an Ending Diagonal. •If Wave A is a Leading Diagonal, then Wave C must not be an Ending Diagonal. •Wave C must be longer than 90% of Wave B by price. •Wave C must be less than 5 times Wave B by price. •It is not allowable to have both Wave 5 of A a failure (Wave 5 is shorter then Wave 4) and Wave 5 of C a failure. •Wave C must be no more than 10 times either Wave A or B in price or time. ZigZag Guidelines: •It is unusual for a Wave within Wave A to have a greater gross price movement than Wave A. •Wave B should end nowhere near beginning of Wave A •Wave B should retrace at least 30% of Wave A. •Wave B is most likely to retrace Wave A by about 38.2%. •Wave B is next most likely to retrace Wave A by about 50%. •Wave B is next most likely to retrace Wave A by about 61.8%. •The largest Wave in B is usually less than the gross price movement of Wave A. •The time taken by Wave B is usually between 61.8% and 161.8% of the time taken by Wave A. •Wave C is most likely to have a similar price length to Wave A. •The next most likely price lengths for Wave C are 61.8% and 161% of Wave A •The next most likely price length for Wave C is 61.8% of Wave A beyond the end of Wave A. •If Wave C is much longer than 161.8% of A, then the pattern is more probably the beginning of an Impulse than a Zigzag. •If Wave C is complete, and has a greater slope than Wave A, expect the Zigzag to extend to an Impulse. •Although Wave C should always be greater in price to Wave B, in rare cases Wave C can be up to 10% shorter than Wave B. •The largest Wave within C by price is usually less than the gross price movement of Wave A. •The time taken by Wave C is usually between 61.8% of Wave A and 161.8% of the shortest Wave of A and B. Flat Rules: A Flat is a three wave pattern labeled A-B-C that moves generally sideways. It is corrective and counter-trend and is a very common Elliott pattern. •Wave A can be any corrective pattern except a Triangle. •Wave B can be any corrective pattern except a Triangle. •Wave B must retrace more than 70% of Wave A. •Wave B is less than twice the price movement of Wave A, including internal points of Wave B. •Although there is no minimum time constraint for Wave B, it must be less than 10 times Wave A. •Wave C must be an Impulse or Ending Diagonal. •Wave C must share some common price territory with Wave A. •Wave C must be less than twice the longest of Waves A and B, including internal points of Wave C. •Wave C must be less the three times the price distance of Wave A. •Disallow back to back failures. •Wave C must be no more than 10 times either Waves A or B in price and time. •There is no minimum time constrains for Wave A. Flat Guidelines: •Wave A is usually a Zigzag family pattern. •Wave A is rarely an Expanding Triangle. •The largest Wave within Wave A is usually less than Wave A by price. •Wave B is usually a Zigzag family pattern. •Wave B is rarely a Flat. •Wave B is usually greater than 95% of Wave A by price. •Wave B is usually less than 140% of Wave A by price. •The largest Wave within B is usually less than Wave A by price. •The time taken by Wave B is generally between 61.8% and 161.8% of Wave A. •Wave C is rarely an Ending Diagonal. •Wave C is often about the same length as both Wave A and B. •Wave C often ends at point which is a percent of Wave A beyond end of Wave A equal to the same percentage away from the start of Wave A. •Wave C usually retraces a minimum of 100% of Wave B. •Wave C normally reaches to the end of Wave A •Wave C is not often more than 140% of the longer of Wave A or B. •If Wave C is longer than Wave B, then Wave C is often about 61.8% of A beyond end of A. •If Wave C is longer than Wave B, then Wave C is often about 161.8% of Wave A from end of Wave B by price. •The time taken by Wave C is generally between 61.8% of Wave 1 to 161.8% of the shortest of Waves A and B. Triangle Rules: CT = Contracting Triangle, ET = Expanding Triangle A Triangle is a common 5 Wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from Waves A to C, and from Waves B to D. A Triangle is either Contracting or Expanding depending on whether the channel lines are converging or expanding. Expanding Triangles are rare. •Wave A of a CT is always either a Zigzag based pattern or a Flat. Wave A of an ET can only be a Zigzag based pattern. •Within Wave A of a CT, Wave B must be less than 105% of Wave A's price length. The same rule applies for Waves C and D of the CT. •Wave B must be a Zigzag based pattern. •Wave C of a CT can be any corrective pattern except a Triangle. Wave C of an ET must be a Zigzag based pattern. •Wave B of a CT must retrace Wave A by 50%. •For a CT, Wave C must be less than Wave B by price and Wave C must be greater than or equal to 50% of Wave B by price. •For an ET, Wave B must be less than Wave C by price and Wave B must be greater or equal to 50% of Wave C by price. •Wave D of a CT can be any corrective pattern except a Triangle. Wave D of an ET must be a Zigzag based pattern. •Wave B, C and D must not move more than 10% beyond the A-C & B-D channel lines (based on the length of Wave C). •In an ET, Wave C must be less than Wave D by price and Wave C must be more than 50% of Wave D by price. •In an ET, Wave A must move within the A-C channel or pass through it by no more than 10% of the length of Wave B by price. •In an CT, Wave D must be less than Wave C by price and Wave D must be greater than or equal to 50% of Wave C by price. •The intersection of the channel lines must occur beyond the end of a CT, and before the beginning of an ET. •The channel lines must either converge or diverge. They cannot be parallel. •Wave D of a CT must not end such that when retraced 25% by E, E will not reach the price territory of A. •Only one channel line in a CT may be horizontal. Neither channel line of an ET can be horizontal. •The maximum time for Wave D is 4 times Wave C. •Wave E of a CT can either be a CT or a Zigzag family pattern. For an ET, Wave E must be a Zigzag based pattern. •In an ET, Wave E must be greater than Wave D by price and Wave D must be greater or equal to 50% of Wave E by price. •In an ET, either Wave A or B will be the shortest Wave in the pattern. •In a CT, Wave E will be less than Wave D by price and Wave E will be greater than or equal to 25% of Wave D by price. •In a CT, either Wave A or B will be the longest Wave in the pattern. •In a CT, the maximum time for Wave E is 4 times Wave C. •Wave E must end in the price territory of A. •Wave E must not pass through the B-D line, or if it does, by no more than 10% of the length of Wave D. •The maximum number of pattern lengths into the future that the channel lines intersect is 6. Triangle Guidelines: •Wave A is usually a zigzag family pattern. •Wave B is usually a zigzag family pattern. •Wave C is often a zigzag family pattern. •Wave C usually takes more time than any other Wave in the pattern. •Wave D is usually a zigzag family pattern. •Waves B, C and D rarely move outside the B-D line. •Waves A, B, C and E rarely move outside the A-C line. •Wave E is usually a zigzag family pattern or the same type of Triangle as the larger pattern. •Usually at least two Waves travelling in the same direction will relate by about 61.8%. •It is common for two or more adjacent Waves will be related by 61.8%. •In a CT, Wave E normally retraces Wave D by about 70%. •Double and Triple ZigZag Rules: •Double (DZ) and Triple (TZ) Zigzags are similar to Zigzags, and are typically two or three Zigzag patterns strung together with a joining Wave called an x Wave, and are corrective in nature. Doubles are not common, and Triples are rare. Zigzags, Double Zigzags and Triple Zigzags are also known as Zigzag family patterns, or 'Sharp' patterns. Double Zigzags are labeled w-x-y, while Triple Zigzags are labeled w-x-y-xx-z. Both these patterns are included in the list of rules and guidelines below. Only a Double Zigzag is illustrated below. Double and Triple ZigZag Rules: •Wave W must be a Zigzag. •Wave C of W cannot be a failure. •Wave X can be any corrective pattern except an ET. •Wave X must be smaller than Wave W by price. •Wave X must retrace at least 20% of W by price. •The gross price movement of Wave X must be less then 3 times the price movement of Wave W. •Wave X must be no more than 5 times Wave W by time. •Wave Y must be a Zigzag •Wave Y must be greater than or equal to Wave X by price. •Back to back and double failures are not allowed. •Wave Y must be greater than 90% of Wave W by price, and Wave Y must be less than 5 times Wave W by price. •Wave Y must be no more than a factor of 5 times either Wave X or W in price or time. •Wave C of Y cannot be a failure. •Wave XX can be any corrective pattern except an ET. •Wave XX must be smaller than Wave Y by price. •Wave XX must retrace at least 20% of Y. •The gross price movement of Wave XX must be less than 3 times the gross movement of Wave W. •Wave Z must be a Zigzag •Wave Z must be greater than or equal to Wave XX by price. •Wave Z must be less than 5 times Wave Y by price, and must also be less than 5 times Wave W by price. •Wave Z must be no more than a 5 times either Waves XX, Y, X or W in both price and time. •Double and Triple ZigZag Guidelines: •The largest Wave in Wave W is usually less than Wave W by price. •Wave X is usually a Zigzag family pattern. •Wave X is usually less than 70% of Wave W by price. •Wave X will usually retrace at least 30% of Wave W. •Wave X is most likely to be a 38.2% retracement of Wave W. •Wave X is next most likely to be a 50% retracement of Wave W. •Wave X is next most likely to be a 61.8% retracement of Wave W. •The largest Wave in Wave X is usually less than 140% of Wave W by price. •The time taken by Wave X is usually between 61.8% and 161.8% of Wave 1. •Wave Y is next most likely to be equal to 61.8% or 161.8% of W by price. •Expect the time taken by Wave Y to be between 61.8% of Wave W and 161.8% of shortest of Wave W and X. •Wave XX is usually a Zigzag family pattern. •Wave XX is usually less than 70% of Wave Y by price. •Wave XX will usually retrace at least 30% of Wave Y. •Wave XX is most likely to be a 38.2% retracement of Wave Y. •Wave XX is next most likely to be a 50% retracement of Wave Y. •Wave XX is next most likely to be a 61.8% retracement of Wave Y. •The largest Wave within Wave XX is usually less than 140% of Wave Y by price. •Wave Z is most likely to be about equal to Wave Y by price. •Wave Z is next most likely to be about equal to 61.8% or 161.8% of Wave Y. •The largest Wave in Wave Z is usually less than Wave Y by price. Double and Triple Sideways Rules: Double (D3) and Triple (T3) Sideways patterns are similar to Flats, and are typically two or three corrective patterns strung together with a joining Wave, called an x Wave, and are all corrective in nature. Doubles are not common, and Triples are rare. Doubles are labeled w-x-y, while Triples are labeled w-x-y-xx-z. Both these patterns are included in the list of rules and guidelines below. Only a Double 3 is illustrated below. •Wave W may be any corrective pattern except a Triangle, double or triple. •Wave C of W cannot be a failure. •Wave X may be any corrective pattern except a Triangle, double or triple. •The minimum X Wave retracement is 70% of Wave W. •The maximum price distance of Wave X is 150% of both the previous Wave and ensuing Wave. All internal data points are considered. •Although there is no minimum time for Wave X, the maximum time is 10 times the time taken by Wave W. •Wave Y may be any corrective pattern except double, triple or a Triangle in a Triple Zigzag. However, Wave Y cannot be a Zigzag if Wave W is a Zigzag. •Wave Y must be greater than or equal to Wave X by price, except if Wave Y is a Triangle. •Wave C of Y cannot be a failure. •Wave Y must be no more than 5 times either Wave X or W in price and time. •Wave Y has no minimum time constraint. •Wave XX may be any corrective pattern except a Triangle, double or triple. •The minimum Wave XX retracement is 70% of Wave Y. •The maximum Wave XX retracement is 150% of previous Wave and ensuing Wave. All internal data points are considered. •Wave Z may be any corrective pattern except double or triple. However Wave Z cannot be a Zigzag if Y is a Zigzag. •Wave Z is greater than or equal to XX by price. •Wave Z must be no more than 5 times either Waves XX, Y, X or W in price and time. •Back to back and double failures are not allowed. •If Wave Y is greater than Wave W by price, then the maximum Wave Z price movement is twice the price movement of Wave W. Double and Triple Sideways Guidelines: •The largest Wave in Wave W is usually less than 140% of Wave W by price. •Wave X is usually a Zigzag family pattern. •The largest Wave in Wave X is usually less than Wave W by price. •Wave X is usually less than 140% of W by price. •Wave X is usually greater than 95% of Wave W by price. •The most likely retracement for Wave X is 110% of Wave W. •Time for X is generally between 62% of W1 and 1.618 of the time of W1. •If Wave Y is a Triangle, the most likely length of Wave Y is about 61.8% of Wave W. If Wave Y is not a Triangle, the most likely lengths for Wave Y are 100% of Wave W, 161.8% of Wave W and 10% of the length of Wave W beyond the end of Wave W. •The largest Wave in Wave Y is usually less than 140% of Wave W by price. •Wave Y is usually less than twice the longest of Wave W and Wave X in price. •Wave Y is generally between 61.8% of Wave W and 161.8% of Wave W in time. •Wave XX is usually a Zigzag family pattern. •The largest Wave in Wave XX is usually less than Wave Y in price. •Wave XX is usually less than 140% of Wave Y by price. •Wave XX is usually greater than 95% of Y by price. •The most likely retracement for Wave XX is 110% of Wave Y. •If Wave Y is a Triangle, most likely length by price is 61.8% of Wave W. If Wave Y is not a Triangle, then the most likely lengths are 100% of Wave W, 161.8% of Wave W and 10% of length of Wave W beyond the end of Wave W, all by price. •The largest wave in Wave Z is usually less than 140% of Wave Y by price. •Wave Z is usually less than twice the longest of Wave Y and Wave XX.
COINBASE:BTCUSDEducation
by XForceGlobal
46