Elliott Wave - General

General 

 When an initial pump then dump happens, how do you know if its a 1-2 or A-B? 

 

 You must prepare by thinking the first impluse could be a 1 OR A, 2 OR B, and 3 OR C. 

 A C has a much lower target then a 3 (use fib extensions) 

 You either get a motive or corrective wave.

 

 Motive takes you in the primary wave of the overall movement 

 Corrective takes you away from the primary trend. 

 

 

 

 

 Wave 1 

 

 

 

 

 Wave 2 

 

 On the wave 2 retracement, you usually target the 0.5 to 0.786 due to it being a deeper pullback and people are still in denial / fear that the pull back is a fake out 

 

 

 

 Wave 3 

 

 Minimum target using fib extensions is hitting or passing 1.618 

 A wave 3 should breakout cleanly from a channel while a wave C usually stays within or may jump out and back in 

 

 

 

 

 Wave 4 

 

 

 

 Wave 5 

 

 

 

 Wave A 

 

 

 

 

 

 Wave B 

 

 

 

 

 

 Wave C 

 

 Minimum target for a C wave is 0.618 with an ideal target between 1 and 1.236. If it extends past the 1.236, then it's most likely a wave 3 

 Usual extension of a C wave is 0.618 and 1.236