Elliott Waves

by l Marko l
 General

W3 never shortest (exceptions)

W4 never overlaps W1 (exceptions)
wave equality
• Two impulsive waves inside a 5s formation same (length …)
Change rule
• correction: W2 sharp -> W4 sideways ; and the other way around
Superordinate structure includes subordinate structure
• W1,3,5 consisting of 5s formation (lower time-frame)
• W2,4 consisting of 3s formation (lower time-frame)
 First Wave or W1

General and Fib. Level

• After trend change
• Initiates new trend
• 1st variant
• Rapid development or rapid subwaves
• W4/W1 no overlap
• Often after strong falling C-waves of a ZigZag
• Or after double correction (abc x abc)
• 2nd variant
• Diagonal Rising Triangle Type II
• Before the trend !!!
• Slow development with overlaps
• Following trend very dynamic
• Fib. Level
• Following retracement of often 61.8%

Formations

Diagonal Rising Triangle Type II

- (5-3-5-3-5)
- Before the trend!!
- overlaping W4/W1
 Third Wave or W3

General and Fib. Level

• Very frequent extension
• 5 formation within W3 (same time-frame)
• Highest volatility in third sub-wave (wave iii)
• End of W3/Extended Diagonal Triangle
• Fib. Level
• Ig. 161.8% of W1
• Extension to 261.8% well possible (gladly also more)
• In case of wave equality only 100%

Formations

Extended Diagonal Triangle

- (3-3-3-3-3)
- Rising highs and lows
- With strong rise in W3
- Overlaping W4/W1
- W3 sometimes shortest
- End W3 !!
 Fourth Wave or W4

General and Fib. Level

• Wave patterns indicating the end of the trend
• Require patience
• Horizontal Triangles (3-3-3-3-3)
• Symmetrical, Descending, Ascending, Inverted
• Almost exclusively in W4, rarely in B wave
• After completion fast and last driving wave
• The “advance”
• Horizontal Triangle in superior wave
• Trend change
• E wave (WE) may or may not break boundary
• Fib. Level
• Ig. 38.2% of W3 (also like 23.6% ; 50% ; 61.8%)

Formations

Horizontal Triangles (Exp. Symmetric)

- Almost exclusively in W4, rarely in WB
- After completion last driving wave
(advance)
- If it occurs in superior wave, trend change
follows
- WE may break boundary or not reach it
 Fifth Wave orW5

General and Fib. Level

• Low dynamics
• Unless: Extension
• Failures
• Rising correction waves
• After W5 correction
• Ig. 61.8% from beginning W1 to end W3
• Fib. Level
• Failures only up to max. end W3 (100%)
• Extensions up to 161.8%
• Wave equality

Formations

Diagonal Triangle Extended W5/Unreg. Correction

- (3-3-3-3-3) - Second return only after extended W5
- After fast, long W3 - WB overshoots W5
- Trend reversal area - Strong downtrend follows
- Overlaping W4/W1 - Correction pattern
- End W5 or WC !!! - Diagonal Triangle >>>>> irregular
correction !!!

Extension
 Corrective Waves

Wave-A or WA
• Forms as ZigZag or wave of 5s
• ZigZag is followed by Flat
• ZigZag follows wave of 5s

Wave-B or WB
• "Fooler" → often when W5 is extended

Wave-C or WC
• Wave of 5s, often interpreted as W1
• WC rarely shorter than WA (special case)

Change rule

Simple/Sharp
Complex/Sideways

Simple/Sharp Complex/Sideways
 Corrections

Simple/Sharp

Normal ZigZag Double ZigZag

- (5-3-5) - (5-3-5-3-5-3-5)
- WC clearly above/below WA

clearly

Complex/Sideways

Flat Unregular Correction (U.C.)

- (3-3-5) - (3-3-5)
- After Flat strong trend - After U.C. strong trend
 Corrections

Complex/Sideways

Running Correction (R.C.)

- (3-3-5)
- C does not pass A
- After R.C. strong trend

Complex/Sideways

Double Triple Triple Triple

- Combination of two corrections - like Double Triple
- (ZigZag, Flat, Horizontal Triangle)
- abc x abc
- Subwaves against trend always 3s
- Subwaves with trend "sometimes" 5s
- Sometimes run horizontally, mostly
against trend

3s 3s
3s
 Corrections

Horizontal Triangles (3-3-3-3-3), see W4

Symmetrical Descending

Ascending Inverted