Elliott Wave Principle – Key to Market Behavior

Elliott Wave Principle – Key to Market Behavior

Section 1 1.7 Corrective Waves Markets move against the trend of one greater degree only with a seeming struggle. Resistance from the larger trend appears to prevent a correction from developing a full motive structure. This struggle between the two...
Elliott Wave Principle – Key to Market Behavior

Elliott Wave Principle – Key to Market Behavior

Section 1 1.6 Detailed Analytics Motive Waves Motive waves subdivide into five waves and always move in the same direction as the trend of one larger degree. They are straightforward and relatively easy to recognize and interpret. Within motive waves, wave 2 always...

Elliott Wave Principle – Key to Market Behavior

Section 1 1.5 Wave Function Every wave serves one of two functions: action or reaction. Specifically, a wave may either advance the cause of the wave of one larger degree or interrupt it. The function of a wave is determined by its relative...

Elliott Wave Principle – Key to Market Behavior

Section 1 1.4 Essential Design Now observe that within the corrective pattern illustrated as wave ② in Figure 1-3, waves (A) and (C), which point downward, are each composed of five waves: 1, 2, 3, 4 and 5. Similarly, wave (B), which points upward, is composed of...

Elliott Wave Principle – Key to Market Behavior

Section 1 1.3 Wave Mode There are two modes of wave development: motive and corrective. Motive waves have a five-wave structure, while corrective waves have a three-wave structure or a variation thereof. Motive mode is employed by both the five-wave pattern of Figure...