Elevate Your Elliott Wave Analysis

 

 

RULES are great. They tell you what you can’t do. The Elliott Wave Principle has three.

 

In a five-wave impulse (shown in the chart below):

• Wave 2 can never retrace more than 100% of wave 1
• Wave 3 can never be the shortest of waves 1, 3 and 5
• Wave 4 can never end in the price territory of wave 1

But GUIDELINES tell you what’s PROBABLE. And that’s what you want to know!     For instance, the guideline of alternation states that if wave two of an impulse is a sharp retracement, expect wave four to be a sideways correction, and vice versa. The chart below illustrates.

Sharp corrections are almost always zigzags (single or double). Sideways corrections include flats, triangles and combinations.

 

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How to Use Elliott’s Rules and Guidelines to Label Charts Correctly

 

In this on-demand course, EWI veteran analyst Jim Martens gives you practical tools and tips to help you improve your wave application. It's a powerful resource for newbies and experienced wavers alike.

 

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