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Basics of Elliott Wave Theory
Welcome to the world of Elliott Waves.
Elliott Wave Theory revolves around three key elements:
Impulse waves consist of five sub-waves, while corrective waves comprise three. These waves form cycles, representing market psychology in action.
Key Rules of Elliott Waves
Elliott Waves and Fibonacci Retracement
Incorporating Fibonacci retracement levels refines Elliott Wave analysis. The fourth wave often hovers between 23.6%, 38.2% and 50%, while correction waves C often unfold within the 50% to 61.8% range.
Elliott Waves as Guides, Not Guarantees
It’s crucial to view tools like Elliott Wave Theory as guiding lights, not crystal balls. While they don’t assure foolproof predictions, they offer a framework to decipher market cycles. As patterns repeat, understanding market psychology becomes the trader’s edge.
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Elliott Wave Theory revolves around three key elements:
- Impulse waves (in the direction of the trend)
- Corrective waves (against the trend)
- Wave degrees
Impulse waves consist of five sub-waves, while corrective waves comprise three. These waves form cycles, representing market psychology in action.
Key Rules of Elliott Waves
- Wave 2 cannot retrace beyond the starting point of wave 1.
- Wave 3 must be longer than both wave 1 and wave 5.
- Wave 4 cannot exceed the end point of wave 1.
Elliott Waves and Fibonacci Retracement
Incorporating Fibonacci retracement levels refines Elliott Wave analysis. The fourth wave often hovers between 23.6%, 38.2% and 50%, while correction waves C often unfold within the 50% to 61.8% range.
Elliott Waves as Guides, Not Guarantees
It’s crucial to view tools like Elliott Wave Theory as guiding lights, not crystal balls. While they don’t assure foolproof predictions, they offer a framework to decipher market cycles. As patterns repeat, understanding market psychology becomes the trader’s edge.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
💡 Elevate Your Trading Game! Join Vestinda's Vibrant Discord Community💬
📈 Discover insights, share strategies, and connect with fellow traders. Click to join: bit.ly/3rmVr9b 💜💜💜
📈 Discover insights, share strategies, and connect with fellow traders. Click to join: bit.ly/3rmVr9b 💜💜💜
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.