In Elliott Wave Theory, diagonal patterns are unique formations that resemble wedges and appear at key turning points. These patterns come in two types—leading diagonals and ending diagonals—and knowing how to differentiate them is essential for accurate wave counts. In this post, we’ll break down their structure, rules, and when they occur in the wave…
Elliott Wave Theory is built around recurring market patterns. While the 5-3 wave structure is the core, there are 13 unique Elliott Wave patterns that traders should recognize. In this guide, we’ll break down each pattern—impulsive and corrective—with clear explanations and chart references. 1. Impulse (Motive) Wave 2. Leading Diagonal 3. Ending Diagonal 4. Zigzag…
Elliott Wave Theory is based on patterns that repeat across timeframes. To analyze these repeating patterns clearly, Elliott introduced the concept of wave degrees—levels of wave hierarchy that help traders label and organize waves accurately. In this guide, we’ll explain how wave degrees work, why they matter, and how to label waves across timeframes without…
Corrective waves are just as important as impulse waves in Elliott Wave Theory. While impulse waves move in the direction of the trend, ABC corrective waves move against it—offering both risk and opportunity for traders. In this article, you’ll learn how to identify ABC corrective waves, understand their structure, and avoid miscounting them in real-time…
The 5-wave impulse pattern is the foundation of Elliott Wave Theory. It forms the driving force behind market trends and reflects the collective psychology of investors as they push prices in one direction. Whether you’re analyzing stocks, crypto, or forex markets, understanding this pattern is crucial for applying Elliott Wave Theory effectively. What Is a…
The Elliott Wave Theory is widely used in technical analysis today, but few know the story of the man who created it—Ralph Nelson Elliott. His groundbreaking work in the 1930s reshaped how we view market behavior, giving traders a psychological map of price movement. This post takes a closer look at Elliott’s life, his discovery,…
Both Elliott Wave Theory and Dow Theory are foundational concepts in technical analysis. While they share some core ideas about market psychology and trends, they differ significantly in structure, methodology, and application. In this post, we’ll compare Elliott Wave and Dow Theory side by side so you can understand how they work and which suits…
Elliott Wave Theory is a popular tool among technical traders, but it also receives mixed reviews. Some traders swear by its ability to predict market turns, while others view it as too subjective. So, how accurate is Elliott Wave Theory in actual trading? Let’s explore its strengths, weaknesses, and how to use it effectively. The…
Elliott Wave Theory provides traders with a framework to understand price movements in the financial markets. But to apply it successfully, you need to follow a set of strict rules that ensure your wave counts remain valid. In this article, we’ll break down the five core rules of Elliott Wave Theory that govern wave structure…
Elliott Wave Theory is a powerful tool used by technical analysts to predict market movements based on recurring price wave patterns. Developed by Ralph Nelson Elliott in the 1930s, this theory suggests that markets move in predictable cycles influenced by investor psychology. In this guide, we’ll break down the basics of Elliott Wave Theory, its…
