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Elliott Wave Theory: Principles, Patterns, Explained

Elliott Wave Ocean

Elliott Wave Concept. principle, patterns, analysis. Elliott Wave Trading Technique

1. About Ralph Nelson Elliott
2. The Foundation of Elliott Wave Principle
3. Motive Waves
Three.1 The Perfect Impulse Wave
3. 2. The Three Rules of Impulse Waves
four. Correcting Waves 5. Elliott
6. “Elliott Waves” – Psychology
7. Conclusion

1. About Ralph Nelson Elliott


Ralph Nelson Elliott was born in Canada in Marysville on July 28, 1871. For most of his life, he worked as an accountant at several railway corporations in Central America and Mexico. Elliott retired early because of the debilitating intestinal illness he made throughout Central America. Elliott started learning the American stock market to keep his thoughts in power. Within the mid-1930s, he observed that inventory costs weren’t random or chaotic, however patterned. The market is governed by natural legal guidelines, in contrast to the extensively accepted opinion that news and occasions are the driving drive behind worth improvement

In 1946, Elliott revealed the e-book "The Law of Nature – The Secret of the Universe", during which he defined all the things he had discovered. On this ebook, he emphasized that the Wave principle doesn’t apply only to the market but to many different areas of life. Elliott died on January 15, 1948, but his legacy continues to be alive, because of individuals like Charles Collins, A.J.Frost and Robert Precher Jr

2. The Basis of Elliott Wave Concept

However what’s the Elliott Wave principle and how can we apply it to the financial market in real time?

Elliott Wave 5-3

By learning 75-year-old market knowledge, Elliott observed that costs are making five swings greater and solely three swings towards it. The swings he referred to as the 'wave'. If the development goes up, there are 5 waves up and three down. If the orientation strikes to the south, the Elliott Wave cycle is the wrong way up – five downwards, three upwards

Instance 5-Three is shown under:

<img class="aligncenter size-full wp-image-1882" src="" alt=" 5-Three-wave-ABC