Section 2 2.6 Learning the Basics With a knowledge of the tools in Chapters 1 and 2, any dedicated student can perform expert Elliott wave analysis. Those who neglect to study the subject thoroughly or apply the tools rigorously give up before really trying. The best...
Section 2 2.5 A Summary of Rules and Guidelines for Waves From a theoretical standpoint, we must be careful not to confuse Elliott waves with their measures, which are as a thermometer is to heat. A thermometer is not designed to gauge rapid short-term fluctuations in...
Section 2 2.4 Volume Elliott used volume as a tool for verifying wave counts and in projecting extensions. He recognized that in a bull market, volume has a natural tendency to expand and contract with the speed of price change. Late in a corrective phase, a decline...
Section 2 2.3 Wave Equality One of the guidelines of the Wave Principle is that two of the motive waves in a five-wave sequence will tend toward equality in time and magnitude. This is generally true of the two non-extended waves when one wave is an extension, and it...
Section 2 2.2 Depth of Corrective Waves No market approach other than the Wave Principle gives a satisfactory answer to the question, “How far down can a bear market be expected to go?” The primary guideline is that corrections, especially when they...
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