Stock Market Online Training Course in Hyderabad, Telugana, India
In Technical analysis, wave theory is the Very Popular why and how? Many investors ask me in my LIVE sessions about Wave Formation, Wave Counting, and how to understand the Bull and Bear Cycle of the Wave theory using Candlesticks Charts?
Where I personally use 3-tricks to Measure Elliott Wave Counting on the Candle Chart.
Stock Market Online Training Course in Hyderabad
RULE NUMBER ONE; Beginning with Extreme High and Low for the Stock or Chart.
Important Point; No matter where you take Highest Point or Lowest Point. I am taking an Impulsive Wave counting from Extreme low in the middle of the year 2001
The wave Counting is Quite Simple on this chart with Wave 1, 2 and nice movement, in wave 3 that moves more confidently, Wave 4 pullback and five-wave advance impulsive again. Now corrective phase Flat A, B, and C Correction. This is a very easy and clear chart to identify wave counting.
Stock Market Online Training Course in Hyderabad
Rule Number TWO;
Just simple ask yourself do I recognize the pattern? Answer No the Okay
Next, ask yourself do I see a motive or corrective wave?
ELLIOTT WAVE classification in two phases Motive and corrective phases if it’s a motive phase WAVE 1,2,3,4 and 5 you have two patterns to work.
- Diagonal and
- Impulsive waves.
Suppose to its corrective phase (A, B, and C) then you have 3 patterns,
- Flat,
- ZIGJAG and
- Triangle
This is a counter-trend move (Corrective Phase) having ZIGZAG Pattern A, B, and C,
RULE NUMBER THREE;
Start in the middle and move forward
I don’t know what is going on but in AUG 2013 the price moved 201 points from 69 to 271 which is a very strong upward move in a short period of time. This is clean and a clear sign of the 3rd wave.
If this the move is Impulsive wave 3 then prior swing low can be labeled as wave (2) and prior swing high can be labeled as Wave (1) Basically it is wave (1) (2) 1,2,3,4 and 5, (3) (4) and (5) motive phases, more often we may see gaps and price surges in a short period of time in wave 3.
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