The Basics of Elliott wave
What is Elliott Wave?
Elliott Wave Theory is a market analysis method developed by Ralph Elliott in the 1930s. It’s based on the idea that markets move in repetitive wave patterns driven by investor psychology.
The theory breaks down market movements into two types of waves: impulse waves (in the direction of the main trend) and corrective waves (against the trend). A complete cycle consists of five impulse waves (numbers 1-5) followed by three corrective waves (A,B,C).
These patterns are said to occur across all timeframes and in various financial markets – stocks, commodities, currencies, you name it. The goal is to identify where you are in the wave cycle to predict potential future price movements.
The basics
First, you should read the book.
Video Playlist that I liked (by Trading Tutor)
I’ve binged these videos, re-watched, paused to take notes, etc. They’re really thorough and cover practically everything you need to know about EW.
Daily update Videos by Michael Filighera
I watch these videos daily and have always found his Elliott Wave analysis to be fair and well reasoned. It’s not often that his larger picture macro count is too far off.