Elliott Wave Flashcards Preview

CMT > Elliott Wave > Flashcards

Flashcards in Elliott Wave Deck (16)
Loading flashcards...
1

5 and 3 wave names

1. Impulse, motive or actionary

2. Corrective, reactionary

2

When 3 is longest...

5 will approximate 1

- When 3 is 161.8 or more of  wave 1 good guideline

3

Alternation

1. If wave 2 is sideways, 4 will be sharp

2. If wave 2 is sharp, 4 will be sideways

4

Corrections

Usually end in the area of wave 4 of a lesser degree

5

Wave 1

1. Half are basing patterns

2. Heavily corrected by Wave 2

3. Lots of short-selling

 

6

Wave 2

1. Erodes much of Wave 1

2. The Bear is Back (Market Psychology)

3. Low volume

7

Wave 3

1. Favorable fundamentals

2. Holds the key to personality of the move

 

8

Wave 4

1. Inverse to wave 2 (sharp vs. flat

2. More often sideways

3. lagging stocks top

9

Wave 5

1. Loses momentum and breadth

2. Psychology is extremely bullish despite bad fundamentals

3. Should look like wave 1 if 3 was big.

 

10

Wave A

1. Technical breakdowns

2. If A is 3 waves = Flat Triangle

3. If A is 5 waves - Zig Zag

 

11

Wave B

1. Shallow retracements lead to deep wave C's

12

Wave C

1. Correlary to wave 3

2. Fundamentals collapse

3. Phsychology is very bearish and scared.

13

Corrective Forms

1. ZigZag: Sharp, A is 5 waves, 5-3-5, could be a double if C doesn't reach objective, 

2. Flat: Sideways. A is 3 waves, 3-3-5, Regular-Expanded-Running

3. Triangle: Sideways, A is 3 waves, 3-3-3-3-3

4. Combination:

14

Types of Flats

1. Regular: A, B, C are fairly even (flag, or range trading)

2. Expanded: B moves beyond A's origin, C moves beyond B's origin (like a broadening pattern), 

3. Running: Like expanded but wave C fails to reach A's start

15

Triangles Characteristics

1. 3-3-3-3

2. Each leg retraces 62% of the prior leg

3. Common as wave 4 and B

4. E wave often falls short.

16

Volume importance

1. Correctives end on low volume

2. Wave 5 ends on low volume