3-Tricks : Where to start Elliott Wave counting on the chart? I get a lot of questions about Elliott Wave but a particular question often received from the followers:
Where to start wave counting on the chart?
How do I begin/start wave counting on the chart?
How do you do Wave Counting?
I’m going to introduce working 3-tricks which are used by me while establishing Elliott Wave Counting on a chart. These are my steps/processes or tricks that can help you to start counting waves.
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T rick 1 : Begin with an Extreme High and Low
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Key thing: you can actually begin the wave counting over the Extreme Low or Extreme High . It doesn’t matter if you start from extreme low or high. I am going to start Impulsive Wave Counting from Extreme Low in the middle of 2001.
The Wave Counting is quite simple on this chart with Wave 1,2 and nice acceleration in wave 3 that moves more confidently, wave 4 pullback and five-wave advance impulsive again. Now corrective phase, flat A, B, and C correction. This is a very easy and clear chart to identify wave counting.
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T rick 2 : Recognize the Pattern
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Just simply ask yourself “Do I recognize the Pattern?”
The answer is NO, then Okay
Next, ask yourself, Do I see a motive or corrective wave?
Elliott Wave classification in two phases, Motive, and Corrective phases. If it’s a motive-phase (wave 1,2,3,4 and 5) then, you have two patterns to work with:
1. Diagonal and,
2. Impulsive waves.
Suppose to, its Corrective-Phase (A,B, and C) then, you have 3 patterns,
3. Flat,
4. Zigzag and,
5. Triangle.
This is a counter-trend move(Corrective Phase) having Zigzag Pattern A, B, and C.
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T rick 3 : Start in the middle and move forward
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I don’t know what is going on but, in Aug 2013, the price moved 201 points from 69 to 271 which is a very strong upward move in a short period of time . This is a clean and clear sign of the 3rd wave .
If this move is Impulsive wave 3 then prior swing low can be labeled as wave (2) and prior swing high can be labeled as wave (1). Basically, it is Wave (1), (2), 1,2,3,4, and 5, (3), (4), and (5) motive phases.
More often, we may see gaps and price surges in a short period of time in Wave 3.
DON'T WORRY IF YOU ARE NEW IN WAVE ANALYSIS OR ELLIOTT WAVE. I CAN HELP YOU.
