The patterns that usually occur in the market can be subdivided in two main categories: Impulsive pattern and corrective pattern. The main difference between these two groups is in Impulsive pattern the move in the market is sharp and without overlap but in corrective pattern, we see sideway and overlapping price actions. The impulsive patterns are labeled by numbers ( 1,2,3,4,5 or i,ii,iii,iv,v) and corrective patterns by letters (A,B,C or W,X,Y,Z). The objective of this blog is to show very briefly the more common patterns and how to use labels for them. The Impulsive Pattern: An impulsive pattern is a […]

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 […]

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 […]

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 […]

In this technical blog we’re going to learn how to identify the most popular among the Elliott Wave patterns: 5 wave Impulsive structure. We’ll get through all conditions which must be met for this popular structure. Many wavers believe that market is always trending in 5 waves, which certainly isn’t the case. Nowadays most markets (with the exception of stock markets) are usually trending and correcting in 3, 7 or 11 swings. The Impulsive structure is not as frequent as it used to be and it must meet all of the rules we’re going to mention. If you don’t follow […]

In this technical blog we’re going to explain what Elliott Wave Flat Pattern should look like. Flat pattern is corrective structure which could be often seen in the market nowadays.There are 3 types of Flats:  Regular,  Expanded and Running flat. In this technical blog we’re going to run through the Regular flat example. At the graphic below, we can see what Regular Flat structure looks like. Inner subdivision is always labeled as A,B,C and it has 3,3,5 structure. That means waves A and B are corrective structures, while wave C is 5 wave impulsive or ending diagonal pattern. Wave B […]