ELLIOTT WAVES and REAL CHART RUNE ANALYSIS
Elliott Wave Theory Interpretation
The Elliott Wave Theory is interpreted as follows:
Waves 1, 2, 3, 4 and 5 form an impulse, and waves A, B and C form a correction. The five-wave impulse, in turn, forms wave 1 at the next-largest degree, and the three-wave correction forms wave 2 at the next-largest degree.
The corrective wave normally has three distinct price movements – two in the direction of the main correction (A and C) and one against it (B). Waves 2 and 4 in the above picture are corrections. These waves typically have the following structure:
Wave Degrees
Elliott identified nine degrees of waves, which he labeled as follows, from largest to smallest:
[
*]Grand Super Cycle
Super Cycle
Cycle
Primary
Intermediate
Minor
Minute
Minuette
Sub-Minuette
The Elliott Wave Theory is interpreted as follows:
- Five waves move in the direction of the main trend, followed by three waves in a correction (totaling a 5-3 move). This 5-3 move then becomes two subdivisions of the next higher wave move.
- The underlying 5-3 pattern remains constant, though the time span of each wave may vary.
Waves 1, 2, 3, 4 and 5 form an impulse, and waves A, B and C form a correction. The five-wave impulse, in turn, forms wave 1 at the next-largest degree, and the three-wave correction forms wave 2 at the next-largest degree.
The corrective wave normally has three distinct price movements – two in the direction of the main correction (A and C) and one against it (B). Waves 2 and 4 in the above picture are corrections. These waves typically have the following structure:
Wave Degrees
Elliott identified nine degrees of waves, which he labeled as follows, from largest to smallest:
[
*]Grand Super Cycle
Super Cycle
Cycle
Primary
Intermediate
Minor
Minute
Minuette
Sub-Minuette