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Elliott Wave
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Guidelines
Elliott Wave Rules & Guidelines of Wave
Formation
Fibonacci Applications
How we can use them to define &
improve pattern recognition
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Complete Market Cycle
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Not This Easy…
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But not so difficult either….
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See something familiar?
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Qualify The Pattern
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Fib Targets - Head
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Fib Targets - RS
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Fib Targets - LS
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Entry
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Stop & Targets
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Trigger Point
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Retest
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Bingo !!
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Manage Trade
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And with Elliott…
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EW Guidelines of Wave Formation
1. Alternation
2. Depth of Corrective Waves
3. Extensions
4. Wave Equality (Time & Magnitude)
5. Channeling (Throw Over and Under)
6. Volume – (Divergence)
7. The Right Look
8. Wave Personality
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1. Alternation
Waves 2 and 4 of Impulses
Sharp for wave 2 – Sideways for wave 4 (new
price extreme)
Often a Fib time relationship also
Waves A and C of Corrections
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2. Depth Of Corrective Waves
Second Waves
50%, 61.8%, 78.6%, 88.6% Retrace of
Wave One
Fourth Waves
23.6%, 38.2%, 50%
Retrace of Third Wave
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3. Extensions
Wave 3 of an Impulse Most Common in
Stock Market
Wave 5 in commodities and Currencies
First Wave Extensions are rare
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4. Wave Equality (Time & Magnitude)
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5. Channeling (Throw Over and Under)
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6. Divergence – Volume &
Momentum Indicators
Wave 5 and wave 3
Wave A and C
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7. The “Right Look”
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8. Wave Personality
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Wave Personality
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EW Guidelines - Extra
Triangles
Ending Diagonals
Truncated Waves
Third Waves
Primary Angle of Trend
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Example
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Silver
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Channeling
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Fibonacci Applications
At Least 2 Degrees of Trend
Golden Ratio
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Fibonacci Retracements
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Impulse Wave Price Divider
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Impulse Wave Time Divider
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AUDJPY - WK
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Channel & Alternation
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Fibonacci Projections
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Fibonacci Retracements
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Add Labels
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What Next?
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Begin the process again
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Gold – Intra Day
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Qualify Structure / Pattern
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Good old channels
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Five Waves Down?
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Corrective Price Channel
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Something not right
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Re-draw Channel
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2nd Time lucky !
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Summary
Using the WP successfully is not just counting 1-5
There are excellent rules & guidelines we can use to formulate a trading plan with the WP
Fibonacci is an integral component to the WP
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Recommended Study (Not Just a Read !!)
Elliott Wave Principle – Frost & Prechter
Visual Guide to EW Trading Wayne
Gorman & Jeffrey Kennedy
Mastering Elliot – Constance Brown
Fibonacci Analysis Constance Brown
Technical Analysis for the Trading
Professional Constance Brown
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Contact
www.elliottwaveireland.com
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