Elliott Wave Theory
ChartMarket moves in 5-wave impulse pattern (1-2-3-4-5) followed by 3-wave correction (A-B-C). Wave 3 is usually the strongest.
Success Probability: 75%
Pattern Visualization
How to Identify
- Wave 1: Initial move up
- Wave 2: Pullback (never below Wave 1 start)
- Wave 3: Strongest move (usually longest)
- Wave 4: Correction (doesn't overlap Wave 1)
- Wave 5: Final push (often with divergence)
- Followed by A-B-C correction
Trading Tips
Trade Wave 3 for best risk/reward. Enter after Wave 2 completes. Wave 5 often fails - prepare for reversal. A-B-C correction offers counter-trend opportunities.
Market moves in 5-wave impulse pattern (1-2-3-4-5) followed by 3-wave correction (A-B-C). Wave 3 is usually the strongest.
Trading Strategy
Trade Wave 3 for best risk/reward. Enter after Wave 2 completes. Wave 5 often fails - prepare for reversal. A-B-C correction offers counter-trend opportunities.
How to Identify
- Wave 1: Initial move up
- Wave 2: Pullback (never below Wave 1 start)
- Wave 3: Strongest move (usually longest)
- Wave 4: Correction (doesn’t overlap Wave 1)
- Wave 5: Final push (often with divergence)
- Followed by A-B-C correction
Risk Management
With a 75% success probability, this pattern offers strong reliability for trading decisions. Maintain standard position sizing.