{"id":9684,"date":"2022-10-12T19:45:42","date_gmt":"2022-10-12T19:45:42","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9684"},"modified":"2022-10-12T19:45:42","modified_gmt":"2022-10-12T19:45:42","slug":"summary-elliott-wave-theory","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/12\/summary-elliott-wave-theory\/","title":{"rendered":"Summary: Elliott Wave Theory"},"content":{"rendered":"\n<p>Here\u2019s a summary of what we covered regarding the&nbsp;<strong>Elliott Wave Theory<\/strong>:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Elliott Waves are fractals.<\/h2>\n\n\n\n<ul><li>Each wave can be split into parts, each of which is a very similar copy of the whole. Mathematicians like to call this property \u201cself-similarity\u201d.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">A trending market moves in a 5-3 wave pattern.<\/h2>\n\n\n\n<ul><li>The first 5-wave pattern is called&nbsp;<strong>impulse<\/strong>&nbsp;wave.<\/li><li>One of the three impulse waves (1, 3, or 5) will always be extended. Wave 3 is usually the extended one.<\/li><li>The second 3-wave pattern is called a&nbsp;<strong>corrective<\/strong>&nbsp;wave. Letters A, B, and C are used instead of numbers to track the correction.<\/li><li>Waves 1, 3 and 5, are made up of a smaller 5-wave impulse pattern while Waves 2 and 4 are made up of smaller 3-wave corrective patterns.<\/li><li>There are 21 types of corrective patterns but they are just made up of three very simple, easy-to-understand formations.<\/li><li>The three fundamental corrective wave patterns are&nbsp;<strong>zig-zags<\/strong>,&nbsp;<strong>flats<\/strong>, and&nbsp;<strong>triangles<\/strong>.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Three Cardinal Rules<\/h2>\n\n\n\n<p>There are three cardinal rules in Elliott Wave Theory when labeling waves:<\/p>\n\n\n\n<p><strong>Rule Number 1:<\/strong>&nbsp;Wave 3 can NEVER be the shortest impulse wave<\/p>\n\n\n\n<p><strong>Rule Number 2:<\/strong>&nbsp;Wave 2 can NEVER go beyond the start of Wave 1<\/p>\n\n\n\n<p><strong>Rule Number 3:<\/strong>&nbsp;Wave 4 can NEVER cross in the same price area as Wave 1<\/p>\n\n\n\n<p>If you look hard enough at a chart, you\u2019ll see that the market really does move in waves.<\/p>\n\n\n\n<p>Because the forex market never moves in a textbook-perfect fashion, it will take many, many hours of practice analyzing waves before you start to get comfortable with Elliott waves.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a summary of what we covered regarding the&nbsp;Elliott Wave Theory: Elliott Waves are fractals. Each wave can be split into parts, each of which is a very similar copy of the whole. Mathematicians like to call this property \u201cself-similarity\u201d. A trending market moves in a 5-3 wave pattern. The first 5-wave pattern is called&nbsp;impulse&nbsp;wave. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[803],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9684"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9684"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9684\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}