Elliott Waves (How To Trade):
Rules and Guidelines
Rule 1: Wave 3 Is Never the Shortest
This rule means that Wave 3 is always longer than at least one of the other two waves (Waves 1 or 2). Usually, Wave 3 is longer than both these waves.
You should never look for Wave 3 to be shorter than both the other two waves. At times, Wave 3 may end up to be equal in length, but never the shortest. There is no exception to this rule.
Rule 2: Wave 4 Should Not Overlap Wave 1
This means the end of Wave 4 should not trade below the peak of Wave 1. This rule cannot be violated in Cash markets.
Elliott Wave Corrections
Corrections are very hard to master. Most Elliott Traders make money during an impulse pattern and then lose it back during the corrective phase.
An impulse pattern consists of five waves. The corrective pattern consists of 3 waves, with the exception of a triangle. An Impulse pattern is always followed
by a Corrective pattern. Corrective patterns can be grouped into two different categories: 1) Simple correction 2) Complex correction
Note: would stick with only trading impulse waves of a 12345 Elliott wave pattern r/t better profits and correction waves are hard to master.
Rules and Guidelines
Rule 1: Wave 3 Is Never the Shortest
This rule means that Wave 3 is always longer than at least one of the other two waves (Waves 1 or 2). Usually, Wave 3 is longer than both these waves.
You should never look for Wave 3 to be shorter than both the other two waves. At times, Wave 3 may end up to be equal in length, but never the shortest. There is no exception to this rule.
Rule 2: Wave 4 Should Not Overlap Wave 1
This means the end of Wave 4 should not trade below the peak of Wave 1. This rule cannot be violated in Cash markets.
Elliott Wave Corrections
Corrections are very hard to master. Most Elliott Traders make money during an impulse pattern and then lose it back during the corrective phase.
An impulse pattern consists of five waves. The corrective pattern consists of 3 waves, with the exception of a triangle. An Impulse pattern is always followed
by a Corrective pattern. Corrective patterns can be grouped into two different categories: 1) Simple correction 2) Complex correction
Note: would stick with only trading impulse waves of a 12345 Elliott wave pattern r/t better profits and correction waves are hard to master.