Quote:
Originally Posted by Pucio
Several hours later
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Hi Pucio,
Can you let me know from the statements below which are right and which are wrong. I am trying to get my head around ABCD.
Thanks
Xard777
Elliot Basic theory…
1) In a bull market there are 5 waves up to the top.
2) Waves 1, 3 and 5 are thrust waves in the direction of the move.
3) Waves 2 and 4 are countertrend or reactionary waves against the main trend.
4) If wave 2 reacts straight down without any zigzag (this is a simple correction) then the other reactionary wave, which is wave 4 will be a complex one. That means you will have a zigzag or an A-B-C type of reaction.
5) The expanding or thrust waves 1, 3, and 5 will usually increase by the following ratios: .618, 1.000, 1.618, 2.618, 3.618 and 4.618.
6) The corrective waves 2 and 4 will be .382, .500 or .618 of the prior wave.
The following Elliott Wave ratios will help you determine what length each wave should be:
1) Corrective wave 2 is usually .382 or .500 of wave 1.
2) Thrust wave 3 is usually .618 of wave 1 or 1.000 of wave 1.
3) Corrective wave 4 is usually .618 .500 or .382 of wave 3. If this is an A B C corrective wave then wave 3 is 1.618 of wave A to B.
4) Thrust wave 5 will usually advance .618 or 1.000 of wave 4.
5) The bottom of wave 4 is usually the .500 midpoint of the entire move.
These ideas should give you an understanding of how to determine where a market is in the overall wave structure and where it might go.
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