Elliot Wave

Explaining the ZigZag Pattern with the Elliott Theory

A zigzag is a corrective wave. As Ralph Elliott put it back in the 1930s, this is the trickiest corrective wave of them all. How come? The answer is quite simple: it has not one, but two impulsive waves of a lower degree. Hence, traders confuse the pattern with an impulsive wave of a larger ...

What is The Flat Pattern with the Elliott Theory

The Elliott Waves theory stood the test of time as one of the most versatile trading theories ever invented. Ralph Elliott studied the way the market moves and put everything together in a sophisticated theory that reveals the market psychology. While recovering from illness, Elliott found that ...

How to Trade 5th Wave Failures

Failures are interesting and, at the same time, powerful concepts within the Elliott Waves Theory. They have a predilection of forming during corrective activity, but also impulsive waves can “fail.” Before anything, let’s review a bit the main idea of the Elliott theory. By counting corrective ...

Ralph Elliott built a trading theory based on human emotions like fear and greed and used different market cycles to explain the financial markets’ moves. He divided the market swings into waves, impulsive and corrective, that explain every upward or downward movement of a market. The theory, ...

One of the most intriguing technical analysis theories, Elliott Waves traces its roots in the first half of the 20th century. Ralph Elliott built a complex trading theory on the assumption that the stock market is the sum of human emotions like optimism and pessimism, fear and greed. He ...

Contracting triangles are the favorite way for a market to consolidate. Whenever you think of a possible range to form, the chances are that the market will form a contracting triangle. The name is not random. The contracting nature of a triangle comes from the two trendlines that define it. ...

LTC/USD From Monday’s spike at $62 the price of Litecoin has retraced by 11.8% as its currently trading at $54.73. Looking at the hourly chart we can see that the price action is now back on the descending channels resistance line, which now serves as a support. As you can see, the price ...