Elliott Wave Rules A to Z
What are Elliott Wave Rules ? And How to Use Them ?
- We have covered the terms starting from A to Z related to the Elliott wave.
- ABC Another name for a three-wave pattern, adjustment, or counter-trend in Elliott wave
- Alternation Wave 2 and Wave 4 Elliott wave for any non-compliant wave tends to be different types of repair waves. For example, if wave 2 is a flat correction, wave 4 will be a zig-zag or triangle.
- Apex Intersection of two lines of the border triangle in Elliott wave
- Aggregate Any Elliott Wave pattern formed by an integrated composite of different wave sequences (opposite or opposite ‘object’) e.g. zig-zag – itself composed of three different waves, ABC combined to form a pattern for Elliott wave.
- Alternate Count A separate test of the rotation pattern that submits less to various rules and regulations than the ‘preferred’ calculation as used in the Elliott wave Principle.
- Barrier triangle The triangle pattern where the B-D track line is horizontal and the A-C trend line points to the main slope to the next higher level.
- Channeling RN Elliott’s definition of drawing parallel boundary lines within the acquisition pattern to determine the support/resistance levels of a continuous Elliott wave.
- Corrective Another name for the counter-trend movement in the Elliott wave. Corrective measures are usually played on three waves, labeled ABC.
- Countertrend Walking, naturally, goes in the direction of a prominent practice. Countertrend travel is usually played by three waves, called ABC. This movement plays more often on the sides than upward or downward.
- Convergence/Cluster A term used to describe the effect when using different fib-price ratios at different degrees of a wave pattern that leads to a price combination at a particular point.
- Diagonal (Ending) The end pattern occurs only in waves 5 or C. It starts as a cone shape that contains ‘scattering’. All internal waves are divided into three, although they are usually different. They can be of two types – ‘contract’ or ‘extension’
- A Diagonal (Leading) The continuous pattern occurs only in 1 or A waves that develop into a cone shape containing ‘scattering’. Waves 1-3-5 are usually separated by a series of five waves – Elliott wave, although they are often different. It can exist in two forms viz. expanding form or contracting form.
- Double Retracement It follows the 5th wave extension in Elliott wave where the price reaps the previous momentum by two stages – first by going back in range, usually at the beginning of the extension, second by moving at the end of the 5th wave, but briefly by the new price limit.
Double Three A combination of correction patterns on two simple sides, separated by a wave with an X label.
- Equality This is the trend of waves 1 and 5 in a trending five-wave pattern of the same size, especially if the 3rd wave is longer than the first wave.
- Extension This is where one of the most popular five-wave motion flows is much larger than the other moving averages within the five-wave pattern. Of the five-wave pattern, it is very common for the third wave to extend, but it arises the possibility of first and 5th wave for further extending
- Expanded flat Flat adjustment where the B&C waves enter the new price range in line with the limit established by wave A.
- Expanding Impulse A five-wave pattern is seen when one of the three parts of the impact ‘extends’.
- Fibonacci Ratios An Italian mathematician from Pisa MR. Leonardo Fibonacci. He discovered the summation series, found “phi” or the “golden ratio”. His work is the foundation of disaster management, and that is why we can keep our standing standards as close as possible.
- Fib Price Ratio estimates are based on Fibonacci values to determine the price of each pattern. The whole Elliott Wave pattern is caused by a certain price point that describes the variance or subtlety that is found to exist. Typical measurements are: e.g. 61.8%, 38.2%, 23.6%. you will learn in depth in Elliott wave course
- Fourth wave of lesser degree Once the 5-wave pattern is complete, there is a tendency for a continuous counter-trend pattern to gain support in the low wave of the trendy 5 wave pattern.
- Failure This occurs in the last wave (e.g. 5) of the movement of the five leading waves. Wave 5 fails to move over a higher set with wave 3. This is also called the truncated or reduced 5th wave.
- Golden Section or Golden Ratio The Golden Section, also known as the “Golden Cut” has been known since ancient times and was taught by Plato and Euclid as the ‘Universal Law of Harmony’ In the use of the Elliott Wave Theory, the ‘Golden Section’ is widely used to measure the objectives of the values of certain patterns. If used in the dividing line, then three equations take place – 0.382, 0.618, and 1.00. 0.382 has the same relationship with 0.618 as 0.618 has with 1.00.
- Hierarchy The arrangement and separation of the various waves help to distinguish the relative position of one group from another
Impulse Wave Rules.
- Impulse Wave It is another name for the distribution of trending prices. It is also called the movement of five waves. These are just some of the goal-setting shareware that you can use. They are powerful and purposeful. You can easily identify them on charts as they are labeled with numbers (1 to 5). learn our Elliott wave course
- Labeling All the numbers and characters you see on the chart represent the “labeling” of Elliott Wave. This is the best estimation of where that Sensex is in its Elliott Wave pattern. Labeling is subject to change as more pricing information becomes available. Another name for this is “Elliott Wave” count “.
- One-two, One-two Also called a series of waves 1 and 2, this is the fastest start of the trendy movement that is ready to blow up.
Overlap The entry of wave
- Overlap The entry of wave four into the price area of wave one. Not allowed for ‘expansion’ pattern of wave impulse pattern but need for ‘diagonal’ pattern of five wave impulse.
- Pattern This is a common reference to the price action in the Nifty. To determine the direction of the trend, two types of price patterns are there. Countertrend price patterns and Trendy price patterns.
- Permutation Specifically refers to the changing patterns of the wave part that can open into a larger bonding pattern – e.g. A wave of zig-zag must be separated by a series of five waves so this can occur from these different angles – increasing the force of the first expansion, extension 3, extension 5, forward contraction, and forward expansion (including 5 permissions) ).
- Preferential Count A basic assessment of the wave pattern is most in line with the various rules and guidelines of The Wave Principle.
- Ratio The relationship between two waves, e.g. 100% balance between A&C waves within a zig-zag pattern. Each wave displays a scale that differs from one another to its vicinity as an ‘object’ within its larger ‘merged’ counterparts.
- Running Flat This is a time when the counter-trend (or adjustment) movement can move toward a basic slope. That is why it is possible that the Nifty has set a new high in advance, or has not yet completed the draw.
- Sharp Correction Any correction pattern that does not contain a new excess price compared to the impulse wave; changes with side adjustments
- Sideways Correction Any correction pattern that contains an excessive price that is closely related to the previous impulse wave; changes with sharp adjustments.
- Throw Over The action is shown to produce five within the diagonal when we briefly enter the boundary line established by waves 1 and 3 before reversal staging
- Thrust Sharp movement after the completion of the triangle.
- Triangle (contracting, ascending, descending, and increasing) – Correction pattern, labeled a-b-c-d-e. It appears as 4th, B, or X. Values add up / fall as the pattern progresses.
- Triple Three A combination of three-sided correction patterns, separated by an X-shaped wave.
- A Triple Zig Zag A combination of three simple sharp correction patterns, separated by a wave marked X.
- Truncated Fifth The pattern where the fifth wave fails to exceed the excessive price of the third wave – also applies to wave C inside the wave which is running.
- Volume A situation where the volume is usually lower in the fifth wave than in the third wave. If the fifth wave rises, it may indicate the magnitude of the ‘expansion’.
- Wave The term is used to describe the components of the patterns of Elliott Waves. It is the singular movement of price action. They form like elements of a larger ‘integrated’ pattern, and in themselves contain small waves of objects which means that each wave itself is a pattern of its own.
- Wave Centric Views all waves as different sequences as aggregate/complete components, or Elliott Waves pattern. They specify as follows: 1-2-3-4-5-A-B-C-D-E-W-X-Y-Z. An idea for you to start analyzing and comparing different waves.
- Zigzag One of the two most common types of adjustment, corrective or counter-trend patterns. A zigzag is a sharp movement on the opposite side of the fundamental trend. They are sharper so they can be confused sometimes as trendy moves. The difference between both zigzag and trendy moves is that zigzag moves play in 3 waves whereas trendy moves play in 5 waves.
- A – Zigzag Double combination of two sharp correction patterns separated by a wave marked X.
So, here we have covered all the terms associated with the Elliott waves full Glossary. To Learn Elliott Wave Please call on 7330777373