As mentioned in the previous lesson, the Elliott Wave Theory identifies trends within the markets, which mimic human psychology. Mass movements or mass swings in human psychology is reflected in repetitive fractal patterns within the charts. Those patterns and trends are called “waves”.
Wave 1 = breakout
Wave 2 = pullback
Wave 3 = largest wave
Wave 4 = another pullback
Wave 5 = last wave of trending market, then a correction
In this lesson, you’ll see what the 5 waves actually look like on the charts and learn about impulse waves (1,2,3,4,5 wave count) vs corrective waves (A, B, C waves). You can utilize this understanding to set appropriate targets.
Note - the Elliott Wave Theory only applies when the market is trending, and not moving sideways.
In this lesson, we’ll build on The Elliott Wave Theory and start to use it as a whole package.
Wave 2 and Wave 4 are pullbacks - one can be very simple, and one generally more complex. Complex pullbacks have more of a price action pattern (such as a rising wedge within the pullback itself),
A ...
In this lesson, you’ll see how significant the Fibonacci Retracement and Extension tools are when integrated with the Elliott Wave Theory.
You’ll learn how to utilize Fibonacci in conjunction with the Elliott Wave Theory to create a strong analysis/bias within the market, specifically when plan...
By now, you should already have a good foundational understanding as to the use of the Elliott Wave Theory, but this lesson will take it even further… we’ll now be adding multi-timeframe analysis into the equation.
A run on a higher timeframe is a trend on the lower timeframe - that’s what we wi...
