August 7, 2016

Elliott Wave Theory Structure : Double Three with a Triangle Y

Double three structures in general are common occurrences in the market and as it has been pointed out before they can also be the Elliott wave formation that a particular market instrument is trending in the larger degrees and time frames as it is simply impossible in some markets to get a legitimate impulsive count. That said these may be seen in any time frame or degree. Noted in the graphic below is a bullish example which can be applied inversely for a bearish market condition. The leading dotted line can represent either a wave 1, 3 or 5th of a […]
August 7, 2016

Elliott Wave Extensions within a 5 wave move

In this article blog you will learn how to deal with Elliott Wave Extensions which occur within impulsive structures. One of the basic rules in Elliott Wave theory says that in 5 wave structure, wave 3 can’t be the shortest one. However, this does not necessary means that wave 3 should always  be extended. Although the extension withing wave 3 is the most comment, extensions could also happen within wave 5 or wave 1. In the picture below, you can see what Elliott wave extensions look like in all three cases : whithin wave 1, wave 3, and wave 5: Statistic […]
August 7, 2016

Elliott Wave personality and characheristics

Besides technical characterists, Elliott wave analysts are also familiar with individual wave personality, which typically reflects the psychology of the moment. In the picture below you can see an example of the rising trend – 5 wave impulsive structure. Wave 1 is rarely obvious at its inception . Traders believe previous trend is still strongly in force and it’s usually considered as correction. Volume might increase a bit as move progressing, but not by enough to alert many technical analysts. Occasionally it could take structure of leading diagonal. Wave 2 corrects wave one and it could never extend beyond the […]