Elliott Wave Theory

Said Ralph Nelson Elliott to three important aspects of price movement in his theory: the ratio, style and time. It shows the pattern on the wave pattern or diversification while the percentage indicating measuring waves. To use this theory in everyday trading the traders set the basic wave or Great session in case he wanted to buy and later sell when the style or model starts to move and change direction in caves.

– Five-band model  

Of the easiest forms to Elliott Wave Theory, which is based on that all the twists and turns and moves in the markets rhythm tracks anti waves of five waves followed by three corrective waves (called as the move from 5 to 3).

Basic waves denoted by 1/2/3/4/5 The waves symbolizes her reversal by A / B / C. Called advanced waves or driving, which is to 1/3/5 waves “rush” and move in a fixed direction while the 2/4 waves waves called “corrective”. Once you have completed five waves will begin corrective waves will moves and that is the symbol for its A / B / C. Corrective waves in the process of moving waves A / C different direction to the original direction while the B wave is moving toward a different correction.

Note: I see through the graphic above uptrend, therefore, the driving waves heading towards the top while the bearish trend formulate regressive waves symbolized her b 1/2/3/4/5 with waves rise high and referred to the code A / B / C.

– Wave cycle

When completed the three corrective waves, will provide five waves of new driving and so on, until we see the reflection of the wave again. It is possible to see that after every five waves of the past as possible to be in the driving wave may be inculded one Similarly, when we see a broad look more adversely we can do the division to other smaller waves.

Waves are classified according to the theory of the day or the length of time the motor cycle starting from the Grand Super cycle, which for a long time to unfold, including the so-called short-wave which gives cover to some just hours Nevertheless, the eight waves still continue most of the time.

Note: the biggest waves in the graphic above are 1/2 and that it is possible that is divided into eight small waves making it thus to become 34 wave. Large waves 1/2 is not only the first two waves among the top five driving waves. 3 wave while it marked the beginning of modern move again. While the 34 wave, which is left over is a loop which can is divided into many small waves which will give the number of waves up to 144 in the wave.

Fibonacci analysis

I discovered the Fibonacci numbers to be computational theory of Elliott facility, as the Fibonacci ratios may