📌📌#LECTURE ONE#📌📌
📍📍Guidelines for Applying Elliott Wave Theory📍📍
A guideline is not a hard and fast rule that can't be broken. It is a tendency - something that happens so often that it can almost qualify as a rule, except for the times it doesn't work as expected.
The guidelines described below are useful ways of applying Elliott Wave analysis that have shown their validity over time. But as they are not rules, they may not work out every time.
📍📍Guidelines for Applying Elliott Wave Theory📍📍
A guideline is not a hard and fast rule that can't be broken. It is a tendency - something that happens so often that it can almost qualify as a rule, except for the times it doesn't work as expected.
The guidelines described below are useful ways of applying Elliott Wave analysis that have shown their validity over time. But as they are not rules, they may not work out every time.
Guideline 1
The Guideline of Equality says that two of the motive sub-waves in a five wave sequence will tend toward equality, and is generally true of the non-extended waves.
This means that when Wave 3 of an impulse wave is the extended wave, Wave 5 will approximately equal Wave 1 in price. This is useful for potentially projecting the end of Wave 5 in an impulse if you recognize Wave 3 as an extended wave.
The Guideline of Equality says that two of the motive sub-waves in a five wave sequence will tend toward equality, and is generally true of the non-extended waves.
This means that when Wave 3 of an impulse wave is the extended wave, Wave 5 will approximately equal Wave 1 in price. This is useful for potentially projecting the end of Wave 5 in an impulse if you recognize Wave 3 as an extended wave.
Guideline 2
The Guideline of Alternation within an Impulse says that the forms for Wave 2 and Wave 4 will alternate. If Wave 2 is a sharp style of correction, Wave 4 will be a sideways style of correction. If Wave 2 is sideways, Wave 4 will be sharp.
This is useful for anticipating the end of a Wave 4 correction within a suspected impulse.
The Guideline of Alternation within an Impulse says that the forms for Wave 2 and Wave 4 will alternate. If Wave 2 is a sharp style of correction, Wave 4 will be a sideways style of correction. If Wave 2 is sideways, Wave 4 will be sharp.
This is useful for anticipating the end of a Wave 4 correction within a suspected impulse.