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Elliott Wave

Created by Ralph Nelson Elliott. This indicator works by identifying patterns in waves of the market. The elliot wave principal says that price moves up in 5 waves and moves down in 3. Although it does not state a time in which these waves are completed, unlike other theories that are similar.

The Pattern

These are the different waves. It begins with the 5 waves, going up. And ends with the 3 corrective waves going down. Although they waves not alwyas adhere to the up or down of their category.

These waves can be applicable to charts on different timeframes and thus the sizes or 'degrees' of these waves. An they have all have different names. On a chart the waves inside these can all be indicated with numbers, numerals and letters:

Wave Degree5 With the Trend3 Against the Trend
Supercycle(I) (II) (III) (IV) (V)(A) (B) (C)
CycleI II III IV VA B C
Primary1 in circleA in cricle
Intermediate(1) (2) (3) (4) (5)(a) (b) (c)
Minor1 2 3 4 5A B C
Minutei ii iii iv va b c
Minuette1 2 3 4 5a b c

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