A guide from basics to advanced wave counting
Chapter 1 – Basic concepts
- Five waves up corrected with three waves down
- Cycles in Elliott Wave theory (waves of different degrees)
- How to count waves (guideline for counting waves of different degrees)
Chapter 2 – Impulse waves
- Impulse rules
- Impulse guidelines
- Extensions in impulsive waves
Chapter 3 – Corrective waves
Chapter 4 – Basic shapes when dealing with Elliott Waves Theory
- Leading diagonal
- Ending diagonal
- Zig-zag rules
- Retracement for zig-zags
Chapter 5 – Flats
Chapter 6 – Principle of alternation
Chapter 7 – Complex corrections
Chapter 8 – Special types of corrections
Chapter 9 – Terminal Impulse
Chapter 10 – Triangles
- Contracting triangles
- Expanding triangles
- Where to look for triangles
- Fibonacci relationships between the legs of a triangle
Chapter 11 – Channel analysis
Conclusion – Elliott Wave Forecasting
There is not a single trader in this world that didn’t hear about the Elliott Waves Theory and struggled with it’s different concepts. Ralph N. Elliott, the one that established the grounds for this theory, was one of the greatest technical analysts markets gave us. His legacy and work in the field of technical analysis is so complex and simple in the same time, being hated or loved, understood or misunderstood, by traders all over the world, not only today, but from the moment it was available to the public.
The beauty of the theory comes from it’s very basic concept, that states that fives waves up are corrected (should be corrected) by three waves down. That’s it, that the main thing regarding Elliott Waves Theory. But the complexity of it comes when going into details about the different degrees waves may be in, what kind of a correction the price is making (simple, double, triple, zig-zag, flat, what kind of flat, running, irregular, elongated, etc), what are the Fibonacci relations between different waves (projections, targets, retracements, expansions, etc), what kind of patterns price is making (contracting triangle, expanding triangle, etc), what kind of relations exist between different waves of different degrees and what to expect when forecasting a price, and the list can go on and on and on.
There are a lot of books written on the subject and my advice is to take a basic one, start from the zero level and try to understand the basic principle behind it. After that you can go into more details, and depending what kind of markets are you trading, then you should look for more explanations. It is different if you’re trading stocks for example compared with currencies, because the currency markets imply huge volatility levels and some aspects of the theory are difficult to be spoted. Moreover, complex forms like double or triple combinations, intervening x waves, etc, are more likely to be found on currency markets than equity markets. However, with proper training and a little bit of will, this turns out to be an extremely rewarding concept and once discovered, you’ll definitely fall in love with it, as it happened to me.
If reading all the above didn’t made you go away yet, it means that this project I am starting here is for you. It is going to be about the basics of Elliott Waves Theory and going into more complex details in the end of it, having a structure of eleven different chapters and going for more than eighty recordings full of examples. Enjoy the trip.
If at any time you feel lost in details, please feel free to write me and email and I will answer it gladly.