The Wave Principle Blueprint by Peter Pel

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TABLE OF CONTENTS
Introduction ............................3 Truncation...................................17

Impulse....................................6 License to Print Money...............18
Ending Diagonal......................7 Strategy - Impulse Waves............19
Leading Diagonal.....................8 Strategy - Ending Diagonal..........20
Corrective Waves.....................9 Strategy - Zigzag..........................21
Zigzag......................................10 Strategy - Flat...............................22
Regular Flat..............................11 Strategy - Triangle.......................23
Expanded Flat...........................12 Strategy Application.....................24
Running Flat ............................13 Chart Example - USD JPY...........25
Triangles...................................14 Chart Example - GOLD...............29
Expanding Triangle...................15 Chart Example - USDJPY............34
Combination..............................16
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INTRODUCTION
The Elliott Wave Blueprint is a Pocket Guide to all the important rules and guidelines
every new trader or a professional trader need to master and become consistently
profitable.
The rules and guidelines of Elliott Wave covered in this book are not all the rules and
guidelines but after years of learning and trading effectively with it, these are among
the few one need to know to apply the methodology to profit from the markets.
I’m Peter Pel, I’m not a lifestyle trader to show you fancy cars, neither I am a multi-
millionaire trader to show you penthouses and estates but I am a professional trader
with a combined in-depth knowledge of three(3) decades with my team of traders at
Pel Markets.
Pel Markets provide retail traders with the best opportunity in being consistently
profitable and achieving success and wealth creation in the financial markets through
our learning environment, community and support team.
Enjoy as you read and feel free to get in touch with me at the Legendary Trade Room
or through any of my social media handles.

TECHNICAL ANALYSIS’ CLASSIC PATTERNS
Head and Shoulders

Broadening Pattern
Parallel Channel
Bull Flag
Double Bottom
Triangle
Rising Wedge

ELLIOTT WAVE PATTERNS

5
5
d
3
b
3 b (3)
4 a a 1
c 5-Wave Impulse
e
Wave 5 Top
Expanding Triangle (4)
c
2
5
3
(3)
(3) a
b c b
(4)
1 e
4
a
c
d (4)
c b
a 2 (3) Zigzag Correction
(4)
Contracting Triangle
Ending Diagonal
Flat Correction

IMPULSE WAVE
Motive waves have a subdivision of five waves and always move in the same
direction as the trend of one larger degree. The most popular and common
motive wave is an Impulse. Impulsive waves have five (5) subdivisions
which are always labelled 1, 2, 3, 4, 5
Impulsive patterns occur in waves 1,3,5 and in corrective waves A and C.
The sub-waves (1,3 and 5) of an impulsive wave are themselves motive.
Rules and Guidelines
v Wave 3 can never be the shortest impulse wave – among Waves 1,3
and 5.
v Wave 2 cannot retrace to a new price low of wave 1.
v Wave 4 never ends in the price area of Wave 1 except in diagonal
triangles.
v Impulsive waves have five (5) subdivision and Waves 1, 3 and 5 are
themselves impulse waves.
v As a guideline, Wave three (3) shows the greatest thrust, except when
Wave five (5) is an extended wave.
v As a guideline, the internal wave structures of corrective Waves 2 and
4 should be different which is termed as alternation.
v As a guideline Waves 2 and 4 often bounce off Fibonacci retracement
levels.

5 or C
ENDING DIAGONAL (3-3-3-3-3)
Downtrend
A diagonal triangle is a unique type of wave that occurs mainly in Wave 5 of
an impulse wave C of a corrective pattern. It occurs at times when the
proceeding move has gone too far, too fast and has run out of steam. A
diagonal triangle is a motive pattern, yet not an impulse, as it has
characteristics of one or two corrective structure.
v It is a five-wave structure
4 or B
v It has a sub-division pattern of 3-3-3-3-3
4 or B
v There is always an overlapping between Wave 4 and Wave 1
v The channel lines of the Diagonals must converge.
v Wave 3 can never be the shortest impulse wave – among Waves 1,3
and 5.
v As a guideline, the internal wave structures of corrective Waves 2 and

4 should be different. Uptrend
5 or C

1 or A
LEADING DIAGONAL (5-3-5-3-5)
A diagonal triangle is a motive pattern, yet not an impulse, as it has one or
two corrective characteristics. In a leading diagonal, waves 1, 3, and 5 are
all impulse waves or all corrective waves in the form of zigzags though
exceptionally rare in its formation.
v Subwaves of Waves 1,3 and 5 subdivides into five (5) waves.
v The subwaves sequence is 5-3-5-3-5
v Waves 2 and 4 are always zigzag patterns.
v Rarely formed at wave 1 of an impulse wave and at wave A of a

zigzag.
v All other guidelines remain the same as the Ending Diagonal.
1 or A

CORRECTIVE WAVES
Corrective waves are composed of a three (3) waves structure

that retraces a percentage of a preceding move.
Corrective Waves
It trends in the opposite direction as the wave of one larger
degree.
They are always labelled with letters.
Waves 2, 4 and B are corrective waves.

Motive Waves
Examples of Corrective Waves are:
! Zigzags
! Flats
! Triangles
!Double Three
!Triple Three

ZIGZAG (5-3-5)
A zigzag is a three-wave corrective pattern that has two impulsive waves of a Downtrend
lower degree. Mostly, the pattern typically is a counter-trend formation and
moves against the main trend. Its inception is mostly a sharp reversal and can
be mistaken for impulse because of the momentum it shows.
v It is composed of 3 waves
v Waves A and C are impulsive waves whiles wave B is corrective.
v The sub-wave sequence is 5-3-5
v The end of wave B is noticeably lower than the origin of wave A.
v Wave C must go beyond the end of Wave A.
v Wave C and Wave A are probably equal.
Uptrend

REGULAR FLAT (3-3-5)

Downtrend
Flats are a very common form of corrective patterns, which generally shows a
sideways direction. A flat correction differs from a zigzag in that the sub-
wave sequence is 3-3-5. Flats corrections usually retrace less of preceding
impulse waves than do zigzags. It occurs most in B waves, though also quite
common in Waves 2 and 4.
v It is a three (3) wave structure
v Wave C is an impulsive wave whiles Waves A and B are corrective.
v Wave A's move is reversed by Wave B and ends near the origin of
Wave.
v Wave C shouldn't retrace beyond the end of Wave A.
v Wave C and Wave A are probably equal
Uptrend

EXPANDED OR IRREGULAR FLAT

Downtrend
This is a common variety of flat where Wave B goes beyond the
(orthodox) end of the previous impulsive wave. Wave B of the 3-3-5
pattern terminates beyond the starting level of wave A, and wave C ends
more substantially beyond the ending level of Wave A.
v It is a three (3) wave structure.
v Wave C is an impulsive wave while waves A and B are corrective.
v Wave B retraces past the end of the prior impulsive wave which is
wave A's origin.
v The C wave normally goes beyond the end of Wave A.
Uptrend

RUNNING FLAT
The running flat is a rare variation on the 3-3-5 pattern where wave B
terminates well beyond the beginning of wave A as in an expanded flat, but
wave C fails to travel its full distance, falling short of the level at which wave
A ended. The forces in the direction of the larger trend are so powerful that the
pattern becomes skewed in that direction.
v It is composed of 3 waves.
v Wave C is an impulsive wave whiles waves A and B are corrective
v Wave C must have a five (5) sub-wave sequence.
v Wave B retraces past the end of the prior impulsive wave which is
wave A's origin.
v Wave C falls short of the level at which wave A ended.

TRIANGLES
Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3. They
appear to reflect a balance of forces, causing a sideways movement that is
UPTREND DOWNTREND
usually associated with decreasing volume and vitality
v It is a five-wave structure labelled a, b, c, d, e

Ascending Triangle
v Wave D and A do overlap
v Wave D cannot move farther the origin of Wave C.
v Wave C cannot be the shortest Wave

Descending Triangle
v Sub-waves of all the diagonal have corrective wave structures.
v Wave A is the longest whiles Wave E is the shortest.
v As a guideline, the sub-wave structures should alternate.

Contracting Triangle

EXPANDING TRIANGLE
This is a reverse symmetrical triangle where the top is rising and the bottom v Wave C cannot be the shortest Wave
declining. This is a triangle where the B wave exceeds the origin of A.
v Sub-waves of all the diagonal have corrective wave structures.
v Wave A is the shortest whiles Wave E is the longest.
v It is composed of 5 waves labelled a, b, c, d, e
v As a guideline, the sub-wave structures should alternate.
v Wave D goes beyond the origin of Wave C.

COMBINATIONS (DOUBLE AND TRIPLE THREES)

A combination combines several types of sideways corrective patterns called
“double threes” and “triple threes.” A double or triple three then is a
combination of simpler types of corrections, including the various types of
zigzags, flats and triangles. As with double and triple zigzags, each simple
corrective pattern is labelled W, Y and Z. The reactionary waves, labelled X,
can take the shape of any corrective pattern but are most commonly zigzags.
Any
Flat Three Triangle

Double Three
v All sorts of corrective patterns can integrate as part of a larger
corrective pattern.
v It has the characteristics (rules and guidelines) of corrective

patterns mentioned above.
v As a guideline the occurrence of a triangle in a combination should

happen at the end of the structure.
v Corrective patterns in a combination generally show alternation.

Flat Any Zigzag Any
Three Three Zigzag
Triple Three

TRUNCATION
A diagonal triangle is a motive pattern, yet not an impulse, as it has one or
two corrective characteristics. In a leading diagonal, waves 1, 3, and 5 are
all impulse waves or all corrective waves in the form of zigzags though
exceptionally rare in its formation.
v Subwaves of Waves 1,3 and 5 subdivides into five (5) waves.
v The subwaves sequence is 5-3-5-3-5
v Waves 2 and 4 are always zigzag patterns.
v Rarely formed at wave 1 of an impulse wave and at wave A of a

zigzag.
v All other guidelines remain the same as the Ending Diagonal.

LICENSE TO PRINT MONEY

Five(5) Profitable Strategies to Trade

Your Way Into Financial Freedom

IMPULSE WAVE

Entry
Protective Stop
Protective Stop
Entry

ENDING DIAGONAL
Conservative Entry
Protective Stop
Entry
Entry
Protective Stop
Aggresive Entry
Protective Stop
Entry
Entry
Protective Stop

ZIGZAG
Aggresive Entry
Protective Stop
Entry
Entry
Protective Stop
Conservative Entry
Protective Stop
Entry
Entry
Protective Stop

FLAT
Protective Stop
Entry
Entry
Protective Stop

TRIANGLE
Entry
Protective Stop
Protective Stop
Entry

Strategy Application
on Charts

USD/JPY


Mode - Motive Wave

Structure - Impulse
Subdivision - 5 waves
Position - Wave 4
Pattern - Triangle
Pattern Structure - 3-3-3-3-3
Direction - Bullish for wave 5

Entry
Protective Stop

GOLD



Mode - Motive Wave

Structure - Impulse
Position - Wave C of Wave 4
Pattern - Ending Diagonal
Entry
Protective Stop


USD/JPY


Protective Stop
Entry
Mode - Motive Wave

Structure - Impulse
Position - Wave C of Wave 4
Pattern - Ending Diagonal


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Introduction ............................3 Truncation...................................17

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TECHNICAL ANALYSIS’ CLASSIC PATTERNS

Head and Shoulders

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ELLIOTT WAVE PATTERNS

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Rules and Guidelines

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Rules and Guidelines

v There is always an overlapping between Wave 4 and Wave 1

v The channel lines of the Diagonals must converge.

v As a guideline, the internal wave structures of corrective Waves 2 and

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Rules and Guidelines

v Subwaves of Waves 1,3 and 5 subdivides into five (5) waves.

v The subwaves sequence is 5-3-5-3-5

v Waves 2 and 4 are always zigzag patterns.

v Rarely formed at wave 1 of an impulse wave and at wave A of a

v All other guidelines remain the same as the Ending Diagonal.

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Corrective waves are composed of a three (3) waves structure

They are always labelled with letters.

Waves 2, 4 and B are corrective waves.

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Rules and Guidelines

v Waves A and C are impulsive waves whiles wave B is corrective.

v The sub-wave sequence is 5-3-5

v The end of wave B is noticeably lower than the origin of wave A.

v Wave C must go beyond the end of Wave A.

v Wave C and Wave A are probably equal.

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REGULAR FLAT (3-3-5)

Rules and Guidelines

v It is a three (3) wave structure

v Wave C is an impulsive wave whiles Waves A and B are corrective.

v Wave C shouldn't retrace beyond the end of Wave A.

v Wave C and Wave A are probably equal

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EXPANDED OR IRREGULAR FLAT

Rules and Guidelines

v It is a three (3) wave structure.

v Wave C is an impulsive wave while waves A and B are corrective.

v The C wave normally goes beyond the end of Wave A.

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Rules and Guidelines

v Wave C is an impulsive wave whiles waves A and B are corrective

v Wave C must have a five (5) sub-wave sequence.

v Wave C falls short of the level at which wave A ended.

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Rules and Guidelines

v It is a five-wave structure labelled a, b, c, d, e

v Wave D cannot move farther the origin of Wave C.

v Wave C cannot be the shortest Wave

v Wave A is the longest whiles Wave E is the shortest.

v As a guideline, the sub-wave structures should alternate.

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COMBINATIONS (DOUBLE AND TRIPLE THREES)

Rules and Guidelines

v It has the characteristics (rules and guidelines) of corrective

v As a guideline the occurrence of a triangle in a combination should