The document discusses Elliot wave theory for analyzing financial markets. It provides guidelines for targeting waves 3 and 5 and how waves 2 and 4 are correlated. It also explains how sub-waves within an impulse wave typically find support/resistance at horizontal levels of previous sub-waves.
The document discusses Elliot wave theory for analyzing financial markets. It provides guidelines for targeting waves 3 and 5 and how waves 2 and 4 are correlated. It also explains how sub-waves within an impulse wave typically find support/resistance at horizontal levels of previous sub-waves.
The document discusses Elliot wave theory for analyzing financial markets. It provides guidelines for targeting waves 3 and 5 and how waves 2 and 4 are correlated. It also explains how sub-waves within an impulse wave typically find support/resistance at horizontal levels of previous sub-waves.
The document discusses Elliot wave theory for analyzing financial markets. It provides guidelines for targeting waves 3 and 5 and how waves 2 and 4 are correlated. It also explains how sub-waves within an impulse wave typically find support/resistance at horizontal levels of previous sub-waves.
Elliot Waves davidd.tech EVERY TRADER SHOULD KNOW THIS
Wave 5 target will be a 2 or 2.618 extension of
Wave 1. It is acceptable to take profits at a double top, of Wave 3 high.
Target of Wave 3 is a 1.618 extension of Wave. It is 5
acceptable to take profits at a 1-1 extension
When accumulating prior to the start of Wave 1
the distribution target is old horizontal support (that flips into resistance).
1 4
Wave 4 is generally opposite of Wave 2; this is
known as the guideline of 'Alternation'. If Wave 2 was a small simple correction (ABC flat to 10.382), then Wave 4 is likely going to retrace a lot (0.618) or be a complex sideways correction such as a WXYXZ).
Wave 2 typically retraces 2 between the 0.382 and This is the standard wave pattern with no extensions. Here 0.618 Fibonacci retracement level. you can see how to get targets for wave 3 and 5 and how wave 2 and 4 are correlated.
IMPULSE ELLIOT WAVE TARGETS davidd.tech EVERY TRADER SHOULD KNOW THIS 5
The 5-3-5-3-5 sub-waves of an impulse normally Þ
nd support / resistance from old sub wave horizontal levels.
eg. Old sub-wave 3 high of Wave 3 turns into
support for sub-wave A of Wave 4 and then sub- wave 2 of Wave 5
Elliott Wave sub waves of an impulse normally find support/
eg. Old sub-wave 3 high of Wave 1 in resistance off of old sub wave horizontal levels. turn will be resistance for sub-wave B 2 of Wave 2 and then sub-wave 1 of Wave 3. S/R = Support / Resistance EW = Elliot Waves
ELLIOT WAVE S/R FLIP davidd.tech EVERY TRADER SHOULD KNOW THIS
