Elliot Waves Flashcards
there are two types of Elliot Waves, which are they
2 types of waves:
● impulse (5 waves 12345)
● Correction (3 waves ABC)
how many waves does impulse waves have?
5 waves-12345
how many waves do correction waves have?
3 waves - ABC
How much minimum % does wave 2 target from A?
what’s the rule for wave 2?
Wave 2 ideally targets minimum 50% of A, only rule is it can’t retrace lower than 1, as
this invalidates entire move.
What’s the rule for wave 2?
only rule is it can’t retrace lower than 1, as
this invalidates entire move.
How much minimum % does wave 2 target from A?
Wave 2 ideally targets minimum 50% of A
What’s can’t wave 3 be?
the shortest wave
Wave 3 is typically the ___________ of the 5 legs, but does NOT HAVE TO BE.
longest
wave 4 typically ______ retrace as hard as wave 2
doesn’t
what’s a retracement?
A retracement in the stock market is a temporary reversal of a stock’s price trend. It’s a short-term period when the price moves against the trend, but then returns to continue the trend
is a retracement a short term or long term action?
short term
does a retracement move against or with a trend?
against a trend
does a retracement return to continue a trend?
yes
does a retracement return to continue a trend?
yes
Wave 4 __________ intersect wave 1 territory(unless _________, which is super rare)
cannot, diagonal
what % does wave 4 often retrace down to?
does it retrace as hard as wave 2
23.6% to 38.2%
no
wave 5 typically extends ________ of wave 0-3
.618
wave 5 typically extends .618 of waves _______
0-3
what’s another common extension of wave 5?
.786
if wave 3 is similar to the length of 1, we can expect ______ to be extended
wave 5
when is a reason for wave 5 to be extended?
if wave 3 is similar to the length of 1
Wave 3 targets typically ______
Wave 3 targets typically 1.618
What are other wave 3 targets?
1.382 or 1.236 or 2.618 or 4.236
Why would there be hyper extension in wave 3 targets?
(hyper extension, often times happens in waves of mass hysteria.)
Wave 3 typically has the ________volume
highest
Impulse waves usually _____ volume
higher
In ABC correction waves, as _____ and ______ are impulses, expect those to have higher volume than B
A and C
Does B have higher volume than A?
NO
Does B have higher volume than C?
NO
Does A have higher volume than B?
Yes
Does C have higher volume than B?
Yes
Flat pattern correction waves(ABC) =
3,3,5
How many subwaves does A have?
3 waves
how many subwaves does B have?
3 waves
how many subwaves does C have?
5 waves
In most flat patterns waves(ABC) ____=___
A = C
What’s a regular flat pattern?
5 legs down
for a regular flat wave with 5 legs down, what type of question should be asked?
is this start of a new trend to the downside?
for a regular flat pattern, what’s important to do?
Analyze previous trends
if A and B are 3 waves and C finished at A, where is it likely to continue?
upwards
What is a running flat pattern?
B goes higher than top of A, usually C = 1:1A.
5 wave impulse in(to) C of flat does not mean impulse to downside beginning, rather end of ________ wave C
5 wave impulse in C of flat does NOT mean impulse to downside beginning, rather end
of corrective wave C.
in a running flat pattern, _____ goes higher than the top of ____, and usually _____ = 1:1 __
Running flat: B goes higher than top of A, usually C = 1:1 A.
What’s an expanded flat pattern?
Expanded flat: B higher than top of 5, B typically = 1.382 of A, C = 1.618 of A (waves
get BIGGER each time)
in an expanded flat pattern B goes higher than top of _____?
top of wave 5
in an expanded flat pattern B typically = _.___ of ____, C = 1.618 of A
Expanded flat: B higher than top of 5, B typically = 1.382 of A, C = 1.618 of A
in an expanded flat pattern B typically = 1.382 of A, __ = _.___ of _
1.382 of A
wave usually get _________ each time in a expanded flat pattern
BIGGER
In a 12345 impulse, typically wave 2 forms a ____ _____.
zig zag
wave 4 takes _______ to form usually, where triangles and flats are most common.
longer
Wave 4 takes longer to form usually, where _______ and ____ are most common
triangles and flats
Triangles and Zig Zags are another type of?
pattern
Triangles: ,,,,_
3,3,3,3,3
How many 3’s does a triangle comprise of?
5
Triangles can often occur in wave _
4
Zig Zags: ,,_
5,3,5
zig zags are generally an aggressive _______.
pullback
When do aggressive pullback zig zag pattern occur
in wave 2
A zig zag pattern is usually an impulsive A ____, ______ B wave, impulsive C (to ______)
down, corrective, downside
A zig zag pattern is usually an ______ A down, corrective ___ wave, _____ C (to downside)
impulsive, B, impulsive
wave ____ = _____ in this picture
C = A
in this picture C can target how far?
C can target anywhere from .618, .786, 1.382, 1.618, possible to see the 2.618 in very
bearish situations.
in this zig zag pattern, to see if the trend is ______, the movements after the steep correction should cross
above the bottom of “A.”
impulsive
in this zig zag pattern, to see if the trend is impulsive, the movements after the steep correction should _____
_____ the_____ of “__.”
cross above the bottom of “A.”
In the event the move to the downside was impulsive, we can verify as wave “__” won’t
overlap “___”.
4, 1
In the event the move to the _______ was impulsive, we can verify as wave “4” won’t
overlap “1”.
downside
In the event the move to the downside was______, we can verify as wave “4” won’t
overlap “1”.
impulsive
Very hard to distinguish if it is an impulsive or corrective as zig zags look like the start of
impulse waves up until “__.”
C
Very hard to distinguish if it is an impulsive or corrective as zig zags look like the start of
_______ waves up until “C.”
corrective
If the 3rd leg is _______, it is usually an impulse move.
extended
If the 3rd leg is extended, it is usually an _____ move.
impulsive
The more bullish the underlying asset, the less likely it is to see a steep ________
correction
To see if the trend is impulsive, the movements after the steep correction should cross
_______ the bottom of “A.”
ABOVE
When do you see a symmetrical triangles?
Symmetrical triangle: both the upper and lower line are sloping, we expect each wave
to get smaller.
What can we expect with a symmetrical triangles?
we expect each wave to get smaller
Symmetrical triangles: both the upper and lower line are ______, we expect each wave
to get _______.
sloping, smaller
In a Symmetrical triangles only ___ of the lines have to hit the ________
2, triangle
in a symmetrical triangle, each wave _____ come _____ higher/lower than the preceding
can’t, down
in a symmetrical triangles, each wave can’t come down _____/____ than the ________.
higher/lower than the preceding
in a symmetrical triangles, each leg is made up of ____waves, _____ patterns.
3, ABC
in a symmetrical triangles, expecting a breakout to the upside, the ____ breaks out, _____ can retest the upper bound of
the triangle.
1,2
in a symmetrical triangles, Expecting a breakout to the upside, the 1 breaks out, 2 can _____the _____ bound of
the triangle.
retest, upper
in a symmetrical triangles, expecting a breakout to the ______, the 1 breaks out, 2 can retest the upper bound of
the triangle.
upside
What’s an ascending triangle?
Higher lows in each preceding wave with a flat horizontal line of
resistance at the top
What triangles does this describe?
Higher lows in each preceding wave with a flat horizontal line of
resistance at the top
Ascending Triangle
In an ascending triangles, Higher ____ in each preceding wave with a flat _______ line of
resistance at the top
lows, horizontal
In an ascending triangles, Higher lows in each preceding wave with a flat horizontal line of
________ at the top
resistance
In an ascending triangles, Wave __ breaks out, ___ often retests the upper bound of the triangle after
breakout
1,2
In an ascending triangles, Wave 1 ____ ___, 2 often ______ the upper bound of the triangle after
breakout
breaks out, retest
In an ascending triangles, Wave 1 breaks out, 2 often retests the _______ bound of the triangle after
__________
upper, breakout
What’s are Descending Triangles?
Lower highs, C meets at the bottom of A, E finds support at
horizontal support (where A and C bottom), wherein 1 breaks out to the upside,
What triangles does this describe?
both the upper and lower line are sloping, we expect each wave
to get smaller.
symmetrical triangles
What triangles does this describe?
Lower highs, C meets at the bottom of A, E finds support at
horizontal support (where A and C bottom), wherein 1 breaks out to the upside,
Descending triangles
Descending Triangles: Lower _____, C meets at the bottom of A, E finds support at
horizontal support (where A and C bottom), wherein 1 breaks out to the upside,
highs
Descending Triangles: Lower highs, ___ meets at the bottom of ___, E finds support at
horizontal support (where A and C bottom), wherein 1 breaks out to the upside,
C,A
Descending Triangles: Lower highs, C meets at the bottom of A, ____ finds support at
horizontal support (where A and C bottom), wherein 1 breaks out to the upside,
E
Descending Triangles: Lower highs, C meets at the ______ of A, E finds support at
horizontal support (where A and C bottom), wherein 1 breaks out to the upside,
bottom
Descending Triangles: Lower highs, C meets at the bottom of A, E finds _____ at
horizontal support (where A and C bottom), wherein 1 breaks out to the upside,
support
Descending Triangles: Lower highs, C meets at the bottom of A, E finds support at
______ _______ (where A and C bottom), wherein 1 breaks out to the upside,
horizontal support
Descending Triangles: Lower highs, C meets at the bottom of A, E finds support at
horizontal support (where A and C ______), wherein 1 breaks out to the upside,
bottom
Descending Triangles: Lower highs, C meets at the bottom of A, E finds support at
horizontal support (where A and C bottom), wherein ____ breaks out to the _____,
1, upside
Descending Triangles : No matter what ______ of the triangle, each leg is made of 3 waves, ie A made of (abc)
B (abc) C (abc) 4 (abc) 5 (abc)
variance
Descending Triangles : No matter what variance of the triangle, each leg is made of ___ waves, ie A made of (abc)
B (abc) C (abc) 4 (abc) 5 (abc)
3
Descending Triangles : No matter what variance of the triangle, each leg is made of 3 waves, ie ___ made of (abc)
B (abc) C (abc) 4 (abc) 5 (abc)
A
Descending Triangles: Volume ____ in a triangle until E, where we usually see a volume uptick on the breakout.
falls
Descending Triangles: Volume falls in a triangle until ___, where we usually see a volume uptick on the breakout.
E
Descending Triangles: Volume falls in a triangle until E, where we usually see a volume _____ on the breakout.
uptick
Descending Triangles: Difficult to determine if “__” is 3 waves, need to be sure it IS 3 waves before determining it
is a triangle pattern
A
Descending Triangles: with descending triangles you need to sure of what?
that it is 3 waves before determinizing it is a triangle pattern
in this scenario, the triangle would break to downside as the first
leg down is 5 waves instead of 3, making the pattern a?
zig zag
what makes this a zig zag pattern?
the triangle would break to downside as the first
leg down into 5 waves instead of 3, making the pattern a zig zag
Expanding Triangle (rare): instead of waves getting ______, they are getting ______.
smaller, bigger
which wave is usually the biggest in cash market?
wave 3
wave 2 the most common retracement is
0.618
wave 2 is usually the deep ________
correction
wave 4 is usually __________
flat
most common retracement for wave 4 is
between .236 to .382
