The Elliott Wave Principle

amitt29 · #11 5th April 2007, 05:36 PM

Hi BVP,

Yes Wave 3 will always be longest of the three up waves.The book drawing may be faulty.

Wave 4 never overlaps wave 1 of same degree except in
1)Leading Diagonal
2)Ending Diagonal also called triangle,which in itsel is a corrective comprising of 33333 structure rather than 53535.Also to be noted is the fact is Ending Diagonal is opposite of Leading Diagonal in properties,position of occurence and significance.

bvpraveen · #12 5th April 2007, 05:56 PM

Quote:

Originally Posted by amitt29

Hi BVP,

..........
Wave 4 never overlaps wave 1 of same degree except in
1)Leading Diagonal
2)Ending Diagonal also called triangle,which in itsel is a corrective comprising of 33333 structure rather than 53535.Also to be noted is the fact is Ending Diagonal is opposite of Leading Diagonal in properties,position of occurence and significance.

So far I know about diagonal triangles, which is an exception to that rule. I'd not learned leading diagonal yet.

Meanwhile can you answer my previous question - http://www.traderji.com/84629-post9.html

Thanks,
Praveen.

amitt29 · #13 5th April 2007, 06:23 PM

He means the entire ABC,As a rule of thumb the 3 wave decline following 5 wave upmove retraces to 61.8 or till top of wave 1 of next smaller degree.
I wud suggest not to look for absolutism as there are deviations in real life,we adjust as market unfolds and EW allows that flexibility.

bvpraveen · #14 5th April 2007, 08:09 PM

Quote:

Originally Posted by amitt29

....or till top of wave 1 of next smaller degree.

You mean wave 1 of the 5 waves up or wave 1 of wave 1 of 5 waves up? Please see the attached chart.

Quote:

I wud suggest not to look for absolutism as there are deviations in real life,we adjust as market unfolds and EW allows that flexibility.

Yes, I'm aware of that. But since I've just started learning EW, I'm trying to get the properties of waves first. At some times his explanation are ambiguous, leading to confusion.

Thanks for the clarifications.

Praveen.

bvpraveen · #15 5th April 2007, 08:15 PM

Hi,

Extensions: Extensions can occur only in Waves 1, 3 or 5. It can't occur in corrective waves A, B and C.

My doubt: Corrective waves A and C broken down into next smaller degree will contain impulse waves 1, 3 and 5. So can extensions occur in those impulse waves, which are actually sub waves of corrective waves?

Extension occurs when there is a strong demand in case of bull markets. So the waves gets extended. Similarly, in case of bear markets, can't the market become very bearish, that the impulse waves of those corrective waves get extended?

Praveen.

amitt29 · #16 5th April 2007, 08:35 PM

Quote:

Originally Posted by bvpraveen

You mean wave 1 of the 5 waves up or wave 1 of wave 1 of 5 waves up? Please see the attached chart.

Yes, I'm aware of that. But since I've just started learning EW, I'm trying to get the properties of waves first. At some times his explanation are ambiguous, leading to confusion.

Thanks for the clarifications.

Praveen.

The diagram is correct.Thats the maximum extent of the the corrective cycle.

amitt29 · #17 5th April 2007, 08:40 PM

Quote:

Originally Posted by bvpraveen

Hi,

Extensions: Extensions can occur only in Waves 1, 3 or 5. It can't occur in corrective waves A, B and C.

My doubt: Corrective waves A and C broken down into next smaller degree will contain impulse waves 1, 3 and 5. So can extensions occur in those impulse waves, which are actually sub waves of corrective waves?

Extension occurs when there is a strong demand in case of bull markets. So the waves gets extended. Similarly, in case of bear markets, can't the market become very bearish, that the impulse waves of those corrective waves get extended?

Praveen.

Extensions can and only occur in impulse(Bull cycle),they will not occur in corrective cycle(Bear phase).Because
1)its countertrend to main traend.
2)2 swings dont complete a fluctuation,u need at least 3 swings.So after wave 1 we have wave 2 down then we always have wave 3.In an uptrend 3 doesnt complete the Bull phase.
Similarly wave a down followed by wave b up has to be followed by wave c(down)which completes the cycle.

bvpraveen · #18 6th April 2007, 10:34 AM

Quote:

Originally Posted by amitt29

Extensions can and only occur in impulse(Bull cycle),they will not occur in corrective cycle(Bear phase).Because
1)its countertrend to main traend.
2)2 swings dont complete a fluctuation,u need at least 3 swings.So after wave 1 we have wave 2 down then we always have wave 3.In an uptrend 3 doesnt complete the Bull phase.
Similarly wave a down followed by wave b up has to be followed by wave c(down)which completes the cycle.

Just to confirm my understanding: So extensions can only occur in waves 1, 3 or 5 of bullish cycle ONLY of any degree. They never occur in the corrective waves, not even in the subwaves of corrective waves, of any degree. Right?

Meanwhile I think extensions mostly occur in impulse waves of higher time frame (daily, weekly, monthly, etc), and their probability of occuring in smaller time frame(intraday) is very less. Am I right?

Thanks for your information.

Praveen.

bvpraveen · #19 6th April 2007, 10:38 AM

Hi,

At this time, I find it difficult to understand the mixed complex corrections. The author had said that these mixed complex corrections mostly occurs in small time frame and they don't occur in larger time frames.

Is it so in the real-life markets? Because I've seen some sample charts in the net, where these mixed complex corrections were present in larger time frames.

Praveen.

amitt29 · #20 6th April 2007, 10:51 AM

Quote:

Originally Posted by bvpraveen

Just to confirm my understanding: So extensions can only occur in waves 1, 3 or 5 of bullish cycle ONLY of any degree. They never occur in the corrective waves, not even in the subwaves of corrective waves, of any degree. Right?

Meanwhile I think extensions mostly occur in impulse waves of higher time frame (daily, weekly, monthly, etc), and their probability of occuring in smaller time frame(intraday) is very less. Am I right?

Thanks for your information.

Praveen.

Due to the flexibility of EW principles,extensions can occur anytime and on any time frame(intraday impacted by news etc)if your count is correct u wud be having prior knowledge of extensions and u can get excellent profits.

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