Elliot Wave Technical Analysis

Trying a variety of analytical techniques is a problem for traders.


My style of trading is defined with the major trend with the timeframe of 1-2 weeks. Wave principle + Chart patterns on Hot Stocks.



Elliot Waves: Cut to the point:
A single cycle comprises of eight waves:
1) In a major trend we assume 5 subs Wave. Be it 1,2,3,4,5
2) In a consolidation phase we assume 3 corrective subs Wave. Be it A,B,C
Both applies to Bull and Bear Market.

Thus, Wave 1,3,5 are impulse wave. Wave 2,4 on the other hand are corrective waves because they correct waves 1 and 3.
The longest cycel in Elliott concept is grand cycle. Each further subdivided into 8 supercycle waves. so and so forth to embrace primary, intermediate, minute, minuette and subminuette

3 Rules:
1) Wave 2 can never retrace more than 100% of wave 1
2) Wave 4 may never end in the price territory of wave 1
3) Out of the 3 impulse waves,1,3,5 - wave 3 can never be the shortest.



Lets put it in practical on Capitaland (Hot stock)... To be continue