Elliott Wave Principle, Technical analysis, Market trends, Forex trading, Stock market analysis, Cryptocurrency trading, Investor sentiment, Risk management, Financial markets, Wave patterns, Predicting market trends, Trading strategy, Market psychology, Investment decisions
28 Jan

Understanding Trends in Wave Structure

  1. Impulses Build the Trend
    • For an uptrend: wave 1, wave 3, wave 5 are net directional moves, wave 2 and 4 correct them.
  2. Progression Over Multiple Degrees
    • A wave 3 on a 4-hour chart might only be wave 1 or wave 3 on a daily scale.
  3. Extensions
    • Wave 3 or wave 5 may extend well beyond normal Fibonacci expansions in strong markets.
  4. Diagonals at Turning Points
    • Ending diagonals for wave 5 can signal trend exhaustion.

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Elliott Wave Entries in Trending Trades

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