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Elliot Waves

The document discusses Elliot wave theory for analyzing financial markets. It provides guidelines for targeting waves 3 and 5 and how waves 2 and 4 are correlated. It also explains how sub-waves within an impulse wave typically find support/resistance at horizontal levels of previous sub-waves.

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bacreathe
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36 views4 pages

Elliot Waves

The document discusses Elliot wave theory for analyzing financial markets. It provides guidelines for targeting waves 3 and 5 and how waves 2 and 4 are correlated. It also explains how sub-waves within an impulse wave typically find support/resistance at horizontal levels of previous sub-waves.

Uploaded by

bacreathe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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davidd.

tech
EVERY TRADER SHOULD KNOW THIS

Elliot Waves
davidd.tech
EVERY TRADER SHOULD KNOW THIS

Wave 5 target will be a 2 or 2.618 extension of


Wave 1. It is acceptable to take profits at a double
top, of Wave 3 high.

Target of Wave 3 is a 1.618 extension of Wave. It is 5


acceptable to take profits at a 1-1 extension

When accumulating prior to the start of Wave 1


the distribution target is old horizontal support (that
flips into resistance).

1
4

Wave 4 is generally opposite of Wave 2; this is


known as the guideline of 'Alternation'. If Wave 2
was a small simple correction (ABC flat to 10.382),
then Wave 4 is likely going to retrace a lot (0.618)
or be a complex sideways correction such as a
WXYXZ).

Wave 2 typically retraces 2 between the 0.382 and This is the standard wave pattern with no extensions. Here
0.618 Fibonacci retracement level. you can see how to get targets for wave 3 and 5 and how
wave 2 and 4 are correlated.

IMPULSE ELLIOT
WAVE TARGETS
davidd.tech
EVERY TRADER SHOULD KNOW THIS 5

The 5-3-5-3-5 sub-waves of an impulse normally Þ


nd support / resistance from old sub wave
horizontal levels.

eg. Old sub-wave 3 high of Wave 3 turns into


support for sub-wave A of Wave 4 and then sub-
wave 2 of Wave 5

Elliott Wave sub waves of an impulse normally find support/


eg. Old sub-wave 3 high of Wave 1 in resistance off of old sub wave horizontal levels.
turn will be resistance for sub-wave B 2
of Wave 2 and then sub-wave 1 of
Wave 3. S/R = Support / Resistance
EW = Elliot Waves

ELLIOT WAVE
S/R FLIP
davidd.tech
EVERY TRADER SHOULD KNOW THIS

Thank you for taking this course!


www.davidd.tech

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