An impulse wave is a wave that signify the main direction of the current trend. It consists of 5 waves: 3 in the direction of the larger wave, 2 in the counter direction. Personally, I believe this formation is the backbone of Elliott wave analysis since it is the easiest to spot and when it [...]
All of us Elliott wave practitioners have or will learn different wave formations, Fibonacci retracement and many advance indicators in our forecasting journey, but a lot of us usually miss the definition of a wave itself. I can explain why a price move and show what a wave look like to others, but it is [...]
Before I start with more wave explanation, I think it is good to review Fibonacci numbers, which we usually knew from sometime ago in elementary or middle school. From my study, the close relationship between Fibonacci numbers and Elliot wave is what makes Elliott Wave Theory (EWT) so useful and accurate (compared to other technical analyses I know) [...]
Elliott Wave Principle
Disclaimer: my understanding of Elliott wave principle comes from the book “Elliott Wave Principle” by A.J. Frost and Robert Prechter Jr, and “Mastering Elliott Wave” by Glenn Neely. Any personal opinion and any quoted definitions/words from outside source(s) in this article will be defined clearly.
What is Elliott wave theory is all about ? What [...]