Find a range breakout with "Correction Wave"!!
Adjusting Wave details part.1
Waves 2 and 4 are subdivided into three waves.
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AWaves are 3 wavesor5 waves become 1 wave
- BWaves are 3-wave movement, which become 1 wave
- CWaves are 5-wave movement, which become 1 wave
A・B・CCombine waves A, B, and C to form a 3-wave adjustment.
Elliott Wave Fundamentals!!(Review)
Impulse waves 5 waves + corrective waves 3 waves must form a set.
From this perspective, corrective waves areA・B・C
＊If you don’t understand this on an actual chart, waves of various degrees are mixed up.
Doubt at the 4th wave and wave B often form a triangle (triangle formation).
What is a triangle formation?
The chart shape becomes close to a triangle.
“Hmm? Isn’t it just like that?!” you might think, but it is exactly that.
Since it is in the real shape, if you draw lines when the highs are getting lower and the lows are getting higher, you’ll get a sense of “Oh!”
If you learn Elliott Wave here,you can predict with high probability when and in which direction it will break out..
Note) It is high probability, not guaranteed!
Now,
Triangle Consolidation(Triangle Formations)
In a triangle consolidation, it subdivides into 5 waves (a～e)3-wave movements × 5 times
3-wave movements × 5 times← This is important
Formulas for the targets of each wave
c = a wave ×0.618
d = b wave ×0.618
e = c wave ×0.618
Three-wave third wave crucial for predicting a triangle consolidation
First, when the corrective phase begins, we consider wave A. Here we determine whether wave A is a 3-wave or a 5-wave structure.Awaveis 3-wave or 5-wave?Then we watch wave B and wave C.
In this case, when wave C is a 3-wave structure, a triangle consolidation is highly likely.Bwave entersCwave to observe.
If this C wave is 3-waves, triangle consolidation is highly probable.
Therefore, the part you previously thought was A wave becomesawave.BWave you thought was becomesbwave.
Thus after c-wave and d-wave, the finalewave ends the consolidation.
With this, one more tactic is added.
First, search past actual charts and look forabcdewaves.
If you solve this, you can predict which direction it will break out.
＊Pay attention to the internal structure of the third wave.The point is whether this is a 3-wave or a 5-wave structure.
If it is a 5-wave structure, I plan to introduce it next time.
Lastly
There are many patterns for corrective waves.
Honestly, this is difficult.
It will require a lot of practice, but knowing this versus not knowing it will make a big difference in using Elliott Wave to plan your strategy.
Whether you use it or not, it’s worth learning, so take your time at your own pace.
The market moves every day.
There’s no need to rush.
