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Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558, Email:
info@prognosis.nl

CONTENT
Content____________________________________________ 2
The Elliott Wave Principle____________________________ 4

1. Introduction________________________________________ 4 2. Basic Theory_______________________________________ 5 3. Patterns___________________________________________ 8

Classic Elliott Wave patterns_________________________________ 9
I. Trends_____________________________________________ 10
a. Impulse__________________________________________ 10
b. Extension________________________________________ 11
c. Diagonal triangle type 1_____________________________ 12
c. Diagonal triangle type 2_____________________________ 13
d. Failure or Truncated 5th_____________________________ 14
II. Corrections_________________________________________ 15
a. Zigzag___________________________________________ 15
Example of a Double Zigzag___________________________ 16
b. Flat_____________________________________________ 17
c. Expanded Flat or Irregular Flat________________________ 18
c. Triangles_________________________________________ 19
d. WXY or Combination_______________________________ 20
e. Running Flat______________________________________ 22
X wave____________________________________________ 23
Modern Elliott Wave patterns_______________________________ 23
I. Trends_____________________________________________ 23
a. Impulse 2_________________________________________ 23
II. Corrections_________________________________________ 24
a. ZigzagFlat________________________________________ 24
b. Running Zigzag____________________________________ 25
c. Failed Flat________________________________________ 26
d. Running Flat (modern)______________________________ 26
e. Ascending and descending Triangles___________________ 27

4. Channeling________________________________________ 27

Targets for wave 3 or C____________________________________ 28 Targets for wave 4________________________________________ 28 Targets for wave 5________________________________________ 29 Targets for wave D and E__________________________________ 30

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Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558, Email:
info@prognosis.nl

Targets in a Double Zigzag_________________________________ 31
5. Fibonacci ratios____________________________________ 31

Targets for wave 1________________________________________ 32 Targets for wave 2________________________________________ 32 Targets for wave 3________________________________________ 32 Targets for wave 4________________________________________ 33 Targets for wave 5________________________________________ 33 Targets for wave A_______________________________________ 33 Targets for wave B_______________________________________ 33 Targets for wave C_______________________________________ 33 Targets for wave D_______________________________________ 33 Targets for wave E________________________________________ 34 Targets for wave X_______________________________________ 34

Trading the Elliott Wave_____________________________ 35
1. General___________________________________________ 35
2. General directives for trading________________________ 35

Study the patterns mentioned under the section “Basic theory”_____ 36 Design alternative scenarios by labeling a chart_________________ 36 Design a trading system____________________________________ 38 Control your emotions_____________________________________ 38

3. Trading example___________________________________ 38
Theory_________________________________________________ 38
Practice________________________________________________ 40
4. Simple, but effective trading strategy__________________ 43
Index____________________________________________ 46

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Prognosis software development, Voice: +31 15 2123543, Fax +31 15 2132558, Email:
info@prognosis.nl

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Elliott Wave Forkology Launches "Commodity Vine" commodity futures markets analysis using Andrews Pitchfork: Energies, Meats, Grains, Metals, Softs. http://ow.ly/1do33