Elliott Wave - Queries on Wave 1

J

justprash

New Member
#1
#1
Hi,

I have been trying to get myself upto speed on Elliott Wave patterns. Recently I started to practice the EW counting based on theory I learnt on some EOD charts. One of the hurdles that I come across is about possible Wave 1 completion.

For e.g., Assume we just finished 1 cycle, 1-2-3-4-5-A-B-C. Now assume we are starting on Wave 1. How do we know that Wave 1 is possibly complete? Here are some subqueries based on this:

1) Only wave is we find another wave which retraces this so-called wave 1 between 38.2 - 61.8% and we label this correction wave as Wave 2.
2) Does wave 1 have to exceed some portion of previous C wave?
3) How do we also know that Wave 1 is extended?

Request people practicing EW to help me out on these beginner queries! :)

Thanks & Regards,
Prash
 
Smart_trade

Smart_trade

Moderator
#2
#2
justprash said:
Hi,

I have been trying to get myself upto speed on Elliott Wave patterns. Recently I started to practice the EW counting based on theory I learnt on some EOD charts. One of the hurdles that I come across is about possible Wave 1 completion.

For e.g., Assume we just finished 1 cycle, 1-2-3-4-5-A-B-C. Now assume we are starting on Wave 1. How do we know that Wave 1 is possibly complete? Here are some subqueries based on this:

1) Only wave is we find another wave which retraces this so-called wave 1 between 38.2 - 61.8% and we label this correction wave as Wave 2.
2) Does wave 1 have to exceed some portion of previous C wave?
3) How do we also know that Wave 1 is extended?

Request people practicing EW to help me out on these beginner queries! :)

Thanks & Regards,
Prash
Click to expand...
From your question ( 1,2,3,4,5 and ABC ) I presume you are talking about wave 1 of larger degree impulse wave 3 or 5.

1) Correct , once we have 28.2 % retracement, we will know that the wave 1 is complete.

2) I dont think wave 1 has to exceed some portion of previous wave C.

2) Waves have alternation between them. So if in the previous wave the extension is in wave 3 or wave 5 then expect extension in Wave 1 in the current wave.

Wave 1 will always be confusing and difficult to trade unless it has extension in it.

Smart_trade
 
S

stock mkt rocks

Member
#3
#3
sound dumb but the simplest way to make sure that wave 1 and subsequent correction (wave 2) has ended is - the high of wave 1 is crossed. In any case, wave 3s are big, so you may not mind missing out a part of it.

With that said , a word of caution - B waves (in a zig zag) or X wave (in a double zig zag) are known to take out the high of wave 1 marginally.. that is where experience comes in handy.
 
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