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Wave degree
(en.wikipedia.org/wiki/Elliott_wave_principle)
The theory claims that markets grow from small price movements by linking Elliot wave patterns to form larger five-wave and three-wave structures that exhibit self-similarity, applicable on all timescales. Each level of such timescales is called the degree of the wave, or price pattern. Each degree of waves consists of one full cycle of motive and corrective waves. Waves 1, 3, and 5 of each cycle are said to be motive, while waves 2 and 4 are corrective. The majority of motive waves is said to assure forward progress in the direction of the prevailing trend, in bull or bear markets, but yielding an overall principle of growth of a market.
The overall movement of a wave one degree higher is upward. After the initial five waves forward and three waves of correction, the sequence is claimed to repeat on a larger degree and the self-similar fractal geometry to continue to unfold. The completed motive pattern should include 89 waves, followed by a completed corrective pattern of 55 waves.
Each degree of a pattern in a financial market has a name. Practitioners use symbols for each wave to indicate both function and degree. Numbers are used for motive waves, and letters for corrective waves (shown in the highest of the three idealized series of wave structures or degrees). Degrees are not strictly defined by absolute size or duration, by form. Waves of the same degree may be of very different size or duration.
While exact time spans may vary, the customary order of degrees is reflected in the following sequence:
Grand supercycle: multi-century
Supercycle: multi-decade (about 40–70 years)
Cycle: one year to several years, or even several decades under an Elliott Extension
Primary: a few months to two years
Intermediate: weeks to months
Minor: weeks
Minute: days
Minuette: hours
Subminuette: minutes
Some analysts specify additional smaller and larger degrees.
(en.wikipedia.org/wiki/Elliott_wave_principle)
The theory claims that markets grow from small price movements by linking Elliot wave patterns to form larger five-wave and three-wave structures that exhibit self-similarity, applicable on all timescales. Each level of such timescales is called the degree of the wave, or price pattern. Each degree of waves consists of one full cycle of motive and corrective waves. Waves 1, 3, and 5 of each cycle are said to be motive, while waves 2 and 4 are corrective. The majority of motive waves is said to assure forward progress in the direction of the prevailing trend, in bull or bear markets, but yielding an overall principle of growth of a market.
The overall movement of a wave one degree higher is upward. After the initial five waves forward and three waves of correction, the sequence is claimed to repeat on a larger degree and the self-similar fractal geometry to continue to unfold. The completed motive pattern should include 89 waves, followed by a completed corrective pattern of 55 waves.
Each degree of a pattern in a financial market has a name. Practitioners use symbols for each wave to indicate both function and degree. Numbers are used for motive waves, and letters for corrective waves (shown in the highest of the three idealized series of wave structures or degrees). Degrees are not strictly defined by absolute size or duration, by form. Waves of the same degree may be of very different size or duration.
While exact time spans may vary, the customary order of degrees is reflected in the following sequence:
Grand supercycle: multi-century
Supercycle: multi-decade (about 40–70 years)
Cycle: one year to several years, or even several decades under an Elliott Extension
Primary: a few months to two years
Intermediate: weeks to months
Minor: weeks
Minute: days
Minuette: hours
Subminuette: minutes
Some analysts specify additional smaller and larger degrees.
Note
Zoom inNote
According to Wyckoff, this is called Shake-out to liquidate all small supplies in an up trend. Smart money are buying, the price will be back quickly.Note
Wave 5
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