Waves 101: Basic wave characteristics
Updated
Hi all,
I would like you all to have a basic understanding of how waves (Elliot Waves essentially) feel like.
Impulse waves (the 1, 3 and 5 you hear of quite often) are generally easier to "feel". See the chart for example. The fall from 11.7k to 8.3k was pretty easy to detect as a downtrend. There is little scope of confusion during these waves.
Corrective waves on the other hand (the 2 and 4 waves and well, many different forms. Mind it, they are not just simple ABC waves as commonly believed) are pretty complex. They are generally combinations of different types of waves and create confusion of bullish/bearish nature on shorter tf. Here for example, we have been correction the impulse wave down and if you are active on the chat, you will see sentiment swing every few hours owing to the complex nature of the wave.
Note: the impulse wave down can even be a part of corrective wave of a higher degree. Don't get confused here, just want everyone to know how to detect these waves.
I would like you all to have a basic understanding of how waves (Elliot Waves essentially) feel like.
Impulse waves (the 1, 3 and 5 you hear of quite often) are generally easier to "feel". See the chart for example. The fall from 11.7k to 8.3k was pretty easy to detect as a downtrend. There is little scope of confusion during these waves.
Corrective waves on the other hand (the 2 and 4 waves and well, many different forms. Mind it, they are not just simple ABC waves as commonly believed) are pretty complex. They are generally combinations of different types of waves and create confusion of bullish/bearish nature on shorter tf. Here for example, we have been correction the impulse wave down and if you are active on the chat, you will see sentiment swing every few hours owing to the complex nature of the wave.
Note: the impulse wave down can even be a part of corrective wave of a higher degree. Don't get confused here, just want everyone to know how to detect these waves.
Note
Edit: Corrective may be as simple as the ABC you hear of all the time, but are often complex as explained above.Note
Correction does not mean a downtrend which follows an uptrend.An impulsive move in any direction is generally followed by a correction which is in the opposite direction to the impulse. (added "generally" here to avoid confusion at the end of wave cycles of a particular degree)
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