# Basic patterns of Elliott Wave Theory Explained

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FX:EURUSD   Euro / U.S. Dollar
THE INTRODUCTION

As you all know the waves always moves in zig zag fashion, either it moves up or it moves down, but the pattern always remains same i.e. Zig zag.
So, the most important question is, with which method one can define the trend or some meaningful pattern, which can help anyone to plan his trade & other opportunities.

There are multiple technical indicators available which can help to identify the patterns. However, the method which I use is The great Elliott Wave Theory.

In this post I would like to summarize all of the basic Elliott Wave patterns.

Here, in the Elliott Wave world, waves are always of two types.
1- Impulsive
2- Corrective

CYCLE

Whenever one impulse and corrective waves get combined one cycle is formed.
Here, I have drawn the graphical representation of same.

IMPULSIVE WAVES

A Impulse is the combination of five wave structure, where all five waves are termed as: wave: 1,2,3,4 & 5

SUB STRUCTURE:

Here, wave 1, 3 & 5 always sub divides into five smaller waves (*)
(•)Waves 1 & 5 sometimes also gets converted into leading diagonal & ending diagonal.

And, waves 2 & 4 always gets completed into a combination of three wave s structure. (structures could be simple or complex) (A separate topic) (also called as the corrective waves)

CORRECTIVE WAVES

ZIG ZAG

Zig Zags are the pattern having the combination of three waves. (Wave a, b & c) Where, Wave A, subdivides into five waves , Wave B, sub divides into three waves and, Wave C, sub divides into five waves

Here, I have drawn graphical representation of same.

FLAT

FLATS are the pattern having the combination of three waves. (Wave a, b & c)
Where, Wave A, subdivides into three waves Wave B, sub divides into three waves And, Wave C, sub divides into five waves

Here, I have drawn graphical representation of same.

TRIANGLES

A Triangle is the side ways price moves, bounded by converging trend lines. Internal wave in a triangle sub divides into 5 sub waves, named as A,B,C,D & E which further sub divides into 3 sub waves.
Triangle often called as the terminating waves patterns, as it always terminates the big wave structure.

It consists of five sub-waves, labeled 1-2-3-4-5, Here, waves 1 & 4 always overlaps (exception) & Here, wave 1,3,5 sub divides into 5 sub waves & waves 2,4 sub divides into 3 sub waves.

ENDING DIAGONAL

It also, consists of five sub-waves, labeled 1-2-3-4-5, Here, waves 1 & 4 always overlaps (exception) & Here, wave 1,2,3,4,5 sub divides into 3 sub waves

The patterns explained above are some of the basic patterns of " The Elliott Wave Theory" In future I would to cover separate topic in great detail..

Stay Tuned....

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