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Wave Killkfd
Wave Killkfd
com
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Background
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
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Theory 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
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(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
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3 1
1
2
4
2 Wrong Correct
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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
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4th wave 5
should not 3
overlap with 1
diagonal (i)
triangle) 1
(ii)
2
Correct
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Rule of 5
Alteration – 3
1 4
Correct
2
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1st wave 3rd wave 5th wave
extension 5 extension 5 extension 5
3
3
4 4
1 3
1
2 4
1
2
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Contracting Expanding
diagonal diagonal
Triangular 5 triangular 5
5th wave 5th wave
3 3
4 4
1 1
2 2
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Contracting 5
Expanding 5
diagonal diagonal
3
triangular 3 triangular
1st wave 1st wave
4 1 4
1
2 2
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4 1
1 4
2
3 5
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Corrective Wave Structure
4 simple structures in corrective wave
Zig-Zag
Flat
Irregular
Horizontal Triangle
2 complex structures in corrective wave
Double Three
Triple Three
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Zig Zag (5-3-5)
(ii)
bc
b (i) (iv) a
(ii)
(iii)
a b
a (i) (i) (iv)
(iii)
c c (v)
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Flat (3-3-5)
b bc
b a (ii)
(i) (iv)
a b
a ac
(iii)
c c (v)
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Irregular (3-3-5)
b bc
b a (ii)
(i) (iv)
b
a
a ac
(iii)
c c (v)
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Horizontal Triangle (3-3-3-3-3)
b b
d d
Contracting
horizontal
triangle e e
c
c
a
a d
d b
b
Expanding
horizontal
triangle a
c a c
e e
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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)
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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)
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Elliott Channel (2)
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1 4
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3?
(1) 5
3 b 2
a
1 4 (2) c
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(3) 5
1 4
(1) 5
3 b 2
a
1 4 (2) c
2
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(5) 5?
Elliott Channel (7) (3) 5
b
3
a
1 4
(1) 5 (4) c
3
b 2
a
1 4
(2) c
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3
Elliott 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
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(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
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(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
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(5) 5
(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
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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. Elliott's Masterworks: The Definitive
Collection
Editor Robert Prechter, Jr.
Contents "The Wave Principle" (1938)
The Financial World articles (1939)
Nature's Law -- The Secret of the Universe
(1946)
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