Mariam Throsby

Total Number of Gifts: 0
Total Value of Gifts: $0.00

Analysis and inference through the chart patterns is one of the most complex but successful strategies used by some traders. There are different trading systems that are based on the chart pattern analysis; Elliot Impulsive & Correction Waves Pattern, founded by R.N. Elliott, is perhaps the easiest among all such systems. Let us have an in-depth view of this system.


It consists of 8 waves, five of them are the impulsive waves (Bullish Phase) and three are the correction waves (Bearish Phase).

1. Impulsive phase

Two of the five waves in the impulsive wave pattern are correction or bearish waves while the rest of the three are bullish waves. Each of the three bullish waves in the impulsive phase is relatively stronger than the previous one i.e. the size of each bullish impulsive wave is longer than the previous wave. However, the two bearish waves in the impulsive phase have almost the same size and these are around 50% or less in length as compared to bullish waves of the impulsive phase. The first phase is known as impulsive because in this phase the price gets higher and higher.

2. Correction phase

The second phase of the Elliott Wave Theory is called the correction phase as it triggers the downtrend in the price. The correction phase consists of three waves; two of them are bearish while one is bullish. The bearish waves in the correction phase need to be of the same size or the second wave should be larger in size as compared to the first one.

Elliott Wave DNA Nikola Delic

The first and the most important thing is to recognize the pattern and it is only possible when the impulsive phase has been completed or is about to complete. Opening a short position at the peak level of the fifth wave in impulsive phase can be a good decision with a target just above the beginning of bearish wave of the correction phase.

All this is obviously not possible just by analyzing the naked chart, therefore the Elliot waves theory should be considered in conjunction with other technical analysis methods such as trendline support & resistance and Fibonacci levels that may give you a good clue about possible beginning or end of various phases & waves in Elliot theory.

There are a few indicators that automatically draw the impulsive & correction waves if Elliott pattern exists, you may consider those as well.

Things to consider

There are certain things that need be considered while trading this pattern. First, look for the Elliott pattern in bigger timeframes such as H4, daily or weekly. Second, never trade the incomplete pattern; wait until you are 100% sure about the formation of pattern. Third, even if you are sure about the pattern, avoid trade unless you find one additional confirmation through trendline support / resistance, Fibonacci levels, horizontal support / resistance levels or candlestick confirmation bars; because there is no hard and fast length of waves given by Elliott wave theory thus trade without an additional confirmation may not be successful.

Guest Book

If you would like, you can add your name and a short message to our Guest Book. Thank you.

Sign the Guest Book

Records 1 - 25 of 1,001+

Sun, Jun 25, 2017
Wow, stunning site. Thnx ...
Also visit my blog post: Frequency Season 2 on dvd ( %url )

Brad Pirkle
Sun, Jun 25, 2017
Ford Fusion: Ford This car looks bold and practical. A copy of Project CARS was provided for PC for review. These companies figure out also if they will be using the donated auto for charitable features or grant the car to a human currently being or household members in need to have.
My weblog: Podcast ( %url )

Sun, Jun 25, 2017
Thanks pertaining to offering these types of terrific write-up.
My weblog Wealth Generators ( %url )

Sat, Jun 24, 2017
Good day, good web-site you've gotten at this time there.
Here is my web page; cheap used cars ( %url )

Tommie Kershaw
Sat, Jun 24, 2017
The main reason for this is that many dealerships are anticipating All New models landing throughout the year. This includes vehicles like the Mazda 2, Ford Fiesta, and Citreon C1. First, in case you were wondering, I did not include the R-Class cars because they do not appear to be very interesting.
Feel free to surf to my weblog: adult news ( %url )

Shayla Matra
Sat, Jun 24, 2017
Thanks, this site is extremely valuable.
Feel free to visit my page - Kim Kardashian Ray J's video ( %url )

Sat, Jun 24, 2017
Good webpage you have going here.
Here is my web page :: Are you a business owner looking to reduce overhead? A new law helps business owners eliminate one of the biggest overhead costs completely. Free and Unlimited Payment credit card processing is now available. Stop paying to process credit cards. Like our page and contact us to see if you qualify. ( %url )

Fri, Jun 23, 2017
Truly interesting look forwards to visiting again.
Also visit my site ... Wealth Generators ( %url )

Fri, Jun 23, 2017
Fantastic web site you've here.
my homepage ... Hay Adams wedding ( %url )

Allan Clark
Fri, Jun 23, 2017
Here is my site; cincin kawin 2016 ( %url )

Jessie Sholl
Fri, Jun 23, 2017
Excellent Webpage, Preserve the excellent work. Thank you so much!
My web site :: black diamond Trader 2 free download ( %url )

Juliann Grossman
Fri, Jun 23, 2017
thank a lot for your website it assists a whole lot.
my blog post - Wealth Generators ( %url )

Thu, Jun 22, 2017
Sustain the amazing work !! Lovin' it!
Have a look at my weblog ... Sexy BHabhi ( %url )

Thu, Jun 22, 2017
Simply just desired to tell you I'm lucky I came on the site!
Look at my blog - grow taller ( %url )

Thu, Jun 22, 2017
Wow, lovely website. Thnx ...
my page ... Black Hat SEO ( %url )

Hayley Obryan
Thu, Jun 22, 2017
Great website! It looks very good! Keep up the good work!
Take a look at my web-site :: Meditation Mindfullness Relaxation Free App Download Wellness ( %url )

Lettie Heil
Thu, Jun 22, 2017
Astonishingly individual pleasant website. Immense info readily available on few clicks.
Also visit my page: Meditation Mindfullness Relaxation Free App Download Wellness ( %url )

Nadine Kelliher
Thu, Jun 22, 2017
Many thanks really helpful. Will certainly share website with my good friends.
Here is my webpage; Meditation Mindfullness Relaxation Free App Download Wellness ( %url )

Tyrone Mackinlay
Wed, Jun 21, 2017
This is because accidentally he damages your assets with his services and you might need to suffer any type of loss because of his negligence, then his insurance will be able to cover all your loss that otherwise may come on your head & you cannot do anything about that. While this may sound complex, there are many alternatives to reach an optimal result. In your wallet or phone is a good idea, since you could be in a parking lot, locked out of your car.
Feel free to visit my weblog ______ ____ ___ ______ ( %url )

Junko Philpott
Wed, Jun 21, 2017
Nice web-site you've got there.
Feel free to surf to my site; how to ( %url )

Ted McClemans
Wed, Jun 21, 2017
You're a very practical website; couldn't make it without ya!
Here is my web page Meditation Mindfullness Relaxation Free App Download Wellness ( %url )

Wed, Jun 21, 2017
I am here to inform you, sir, that your website is truly outstanding!
Visit my blog post ... prayer before surgery ( %url )

Ashly Corbin
Wed, Jun 21, 2017
I value the content on your websites. Thanks a lot.
My website ... movie t shirts ( %url )

Tue, Jun 20, 2017
Your knowledge is amazingly fascinating.
Look at my web blog :: Wealth Generators ( %url )

Adrienne Faust
Tue, Jun 20, 2017
I really like this website! Can register without a doubt!
Here is my blog post kleingarten wien kaufen ( %url )

Records 1 - 25 of 1,001+

If you think this page contains objectionable content, please inform the system administrator