Wave Function

Every wave serves one of two functions: action or reaction. Specifically, a wave may either advance the cause of the wave of one larger degree or interrupt it. The function of a wave is determined by its relative direction. An actionary or trend wave is any wave that trends in the same direction as the wave ...

Degrees

When numbering and lettering waves, the scheme shown below is recommended to differentiate the degrees of waves in the stock market's progression: The most desirable form for a scientist is usually something like 11, 12, 13, 14, 15, etc., with subscripts denoting degree, but it's a nightmare...

Wave Numbers

Number of Waves at Each Degree Impulse + Correction = Cycle Largest waves 1+1=2 Largest subdivisions 5+3=8 Next subdivisions 21+13=34 Next subdivisions 89+55=144 Number of Waves at Each Degree   Motive + Corrective  = Cycle   (Impulse)  (Zigzag)   Largest...

Essential Design

The market's compound construction is such that two waves of a particular degree subdivide into eight waves of the next lower degree, and those eight waves subdivide in exactly the same manner into thirty-four waves of the next lower degree. The Wave Principle, then, reflects the fact that waves of any degree in any series ...

Wave Mode

There are two modes of wave development: motive and corrective. Motive waves have a five-wave structure, while corrective waves have a three-wave structure or a variation thereof. Motive mode is employed by both the five-wave pattern of Figure 1-1 and its same-directional components, i.e., waves...

Basic Tenets

Under the Wave Principle, every market decision is both produced by meaningful information and produces meaningful information. Each transaction, while at once an effect, enters the fabric of the market and, by communicating transactional data to investors, joins the chain of causes of others' behavior. This feedback loop...

Short History

Although it is the best forecasting tool in existence, the Wave Principle is not primarily a forecasting tool; it is a detailed description of how markets behave. Nevertheless, that description does impart an immense amount of knowledge about the market's position within the behavioral continuum and therefore about its probable ensuing path. The primary value of the Wave Principle is that it provides...

Elliott Wave Basic Tutorial - Introduction

Market prices move in recognizable patterns.Recent scientific research has validated several aspects of R.N. Elliott's observations about markets. Of course, these findings only confirmed what countless traders and investors knew all along.R.N. discovered the Wave Principle nearly 70 years ago. Over the decades, his discovery was kept alive by a handful of individuals. A few of those, such as Bolton,...