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

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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

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Wave 3

• Minimum target of 1.618

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Wave 4

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Wave 5

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Wave A

 

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Wave B

 

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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 1 to 1 of the A wave