Elliott-wave

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Elliott-wave

  1. 1. acrotec.com 1
  2. 2. acrotec.comBackground Ralph Nelson Elliott) (1871 - 1948) studied the wave phenomena of the US stock market in 1934 Published the “Wave Principle “ in 1938 Published the “Nature Law” in 1942 In 1970s, Robert Prechter, Jr. made Elliott Wave Theory popular in the investing communities 2
  3. 3. acrotec.comTheory Outline  Market fluctuations due to:  Impulse Wave  Corrective Wave  Impulse wave  follows the trend  composes of 5 sub-waves  Corrective wave  moves against the trend  Composes of 3 sub-waves  Waves within waves 3
  4. 4. acrotec.com (5) 5 Waves within 3 2 Waves (3) 5 (b) c 1 b 4 1 4 a 3 2 3 a 2 b 4 (a) 5 1 1 (1) 5 4 (4) c 3 3 b 2 (c) 5 1 a By counting waves in the long 4 term to short term charts, (2) c forecasting can be made 2 4
  5. 5. acrotec.comTime / Price Structure ofFinancial Markets Fluctuations according to:  the Fibonacci Number Series  Fractal Structure  Non-linearity  Asymmetry 5
  6. 6. acrotec.comWave Counting Principle  2nd wave should not exceed the beginning of 1st wave  3rd wave should not be the shortest among 1st, 3rd and 5th wave  No overlapping between 4th and 2nd wave (with exception in diagonal triangle)  Rule of alteration – 2nd and 4th waves take different wave forms 6
  7. 7. acrotec.com End of 2nd wave should not exceed the beginning of 1st wave 5 3 1 1 2 4 2 Wrong Correct 7
  8. 8. acrotec.com 3rd wave 5 should not be 3 the shortest 1 4 among 1st, 3rd 2 Wrong and 5th wave (iii) (i) 1 (ii) 2 Correct 8
  9. 9. acrotec.com 4th wave 5 should not 3 overlap with 1 the 2nd 4 Wrong wave 2 (except for (iii) diagonal (i) triangle) 1 (ii) 2 Correct 9
  10. 10. acrotec.com Rule of 5 Alteration – 3 2nd and 4th Correct wave take 1 4 different 5 2 forms 3 1 4 Correct 2 10
  11. 11. acrotec.com 3 Wave Forms in Impulse Wave (1) Extension –  One of the 1st , 3rd and 5th wave will extend conspicuously  3rd wave would not be the shortest among 1st, 3rd and 5th wave 11
  12. 12. acrotec.com 1st wave 3rd wave 5th wave extension 5 extension 5 extension 5 3 3 4 4 1 3 1 2 4 1 2 2 12
  13. 13. acrotec.com3 Wave Forms in Impulse Wave (2)  Diagonal triangle –  Wave structure in upward or downward diagonal triangle  In a form of contracting or expanding triangle  The sub-waves in the diagonal triangle take the structure of 3-3-3-3-3  If diagonal triangle appears at the 1st wave, it will take the structure of 5-3-5-3-5  The 2nd and the 4th sub-wave will overlap 13
  14. 14. acrotec.com Contracting Expanding diagonal diagonal Triangular 5 triangular 5 5th wave 5th wave 3 3 4 4 1 1 2 2 14
  15. 15. acrotec.comContracting 5 Expanding 5diagonal diagonal 3triangular 3 triangular1st wave 1st wave 4 1 4 1 2 2 15
  16. 16. acrotec.com3 Wave Forms in Impulse Wave (3)  5th wave extension –  5th wave failed to exceed the 3rd wave end  5th wave takes a structure of 5-3-5-3-5  failure to have the momentum to breath into new high / low before reversal 16
  17. 17. acrotec.com Upward 5th wave Downward 5th wave failure failure 3 5 2 4 1 1 4 2 3 5 17
  18. 18. acrotec.comCorrective Wave Structure  4 simple structures in corrective wave  Zig-Zag  Flat  Irregular  Horizontal Triangle  2 complex structures in corrective wave  Double Three  Triple Three 18
  19. 19. acrotec.com Zig Zag (5-3-5) (ii) bc b (i) (iv) a (ii) (iii) a b a (i) (i) (iv) (iii) c c (v) 19
  20. 20. acrotec.com Flat (3-3-5) b bc b a (ii) (i) (iv) a b a ac (iii) c c (v) 20
  21. 21. acrotec.comIrregular (3-3-5) b bc b a (ii) (i) (iv) b a a ac (iii) c c (v) 21
  22. 22. acrotec.comHorizontal Triangle (3-3-3-3-3) b b d dContractinghorizontaltriangle e e c c a a d d b bExpandinghorizontaltriangle a c a c e e 22
  23. 23. acrotec.com Double-three x b b a bc c a c xc (ii) b a (ii) a (i) (iv) a bc (i) (iv) a b (ii) (iii) b b ac a (i) (i) (iv) (iii) (iii) c (v) c (v) 23
  24. 24. acrotec.com Triple-three x b b x b a c a c a c bc bc xc xc a (ii) (ii) b a (ii) b (i) bc (iv) a (i) (iv) (iv) a b (i) a b (ii) a a (iii) ac b (iv) ac b b (iii) (iii) a (i) (i) (iii) c (v) c (v) c (v) 24
  25. 25. acrotec.com Elliott Channel (1) 1 2 25
  26. 26. acrotec.com Elliott Channel (2) 1 2 26
  27. 27. acrotec.com 3Elliott Channel (3) 4 1 2 27
  28. 28. acrotec.comElliott Channel (4) 5 3 1 4 2 28
  29. 29. acrotec.com 3?Elliott Channel (5) 1 (1) 5 3 b 2 a 1 4 (2) c 2 29
  30. 30. acrotec.com (3) 5Elliott Channel (6) 3 1 4 (1) 5 3 b 2 a 1 4 (2) c 2 30
  31. 31. acrotec.com (5) 5?Elliott Channel (7) (3) 5 b 3 a 1 4 (1) 5 (4) c 3 b 2 a 1 4 (2) c 2 31
  32. 32. acrotec.com (5) 5 3Elliott Channel (8) (3) 5 1 4 b 3 a 2 1 4 (1) 5 (4) c 3 b 2 a 1 4 (2) c 2 32
  33. 33. acrotec.com (5) 5Elliott Channel (9) 3 2 (3) 5 1 4 b 4 1 3 a 3 2 1 (1) 5 4 (4) c (a) 5 3 b 2 a 1 4 (2) c 2 33
  34. 34. acrotec.com (5) 5Elliott Channel (10) 3 2 (b) c (3) 5 a 1 4 b 4 1 3 a 3 2 b 1 (1) 5 4 (4) c (a) 5 3 b 2 a 1 4 (2) c 2 34
  35. 35. acrotec.com (5) 5Elliott Channel (11) 3 2 (b) c (3) 5 a 1 4 b 4 1 2 3 a 3 2 4 b 1 1 (1) 5 4 (4) c (a) 5 3 3 b 2 (c) 5 a 1 4 (2) c 2 35
  36. 36. acrotec.com Item Details Book Name Elliott Wave Principle: Key to Market Behavior Author Robert Prechter and A.J. Frost Contents The basic tenets of wave theory The rules and guidelines of wave analysis The scientific background of the Wave Principle and Long term waves Item Details Book Name R. N. Elliotts Masterworks: The Definitive Collection Editor Robert Prechter, Jr. Contents "The Wave Principle" (1938) The Financial World articles (1939) Natures Law -- The Secret of the Universe (1946) 36

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