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Elliot Wave Theory
Elliot Wave Theory
Elliott based part his work on the Dow Theory, which also defines
price movement in terms of waves.
In the 1930s, Ralph Nelson Elliott found that the markets exhibited
certain repeated patterns.
First rule: Wave
rule 2 cannot retrace the whole wave 1.
Second rule: Wave
rule 3 cannot be the shortest among
waves 1, 3 and 5.
Third rule: Waves
rule 1 and 4 must not overlap.
ELLIOT WAVE THEORY
ELLIOT WAVE THEORY
Wave B
Usually 50% of Wave A
Should not exceed 75% of Wave A
Wave C
either 1 x Wave A
or 1.62 x Wave A
or 2.62 x Wave A
ELLIOT WAVE THEORY
ELLIOT WAVE THEORY
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