Interactive Motive Wave Checklist

Updated
Here is an interactive tool that can be used for learning a bit about Elliott Waves

🎲 How it works?
The script upon load asks users to enter 6 pivots in an order. Once all 6 pivots are selected on the interactive chart, the script will calculate if the structure is a valid motive wave.

When you load the script, you will see a prompt on the chart to select points on the chart to form 6 pivots.

When you select the 6 pivots, the checklists are populated on the chart to notify users which conditions for qualifying the selection has passed and which of them are failed.

🎲 Conditions for Motive Wave

Motive wave can be either Impulse or Diagonal Wave. Diagonal wave can be either expanding or contracting diagonals. To learn more about diagonal waves, please go through this idea.

Rules for generic motive waves are as below
• Pivots in order - Checks wether the pivots selected are in progressive order.
• Directions in order - Checks if the pivot directions are correct - either PH, PL, PH, PL, PH, PL or PL, PH, PL, PH, PL, PH
• Wave 2 never moves beyond the start of wave 1 - Wave 2 retracement is less than 100% of wave1
• Wave 3 always moves beyond the end of wave 1 - Wave 3 retracement is more than 100% of wave2
• Wave 3 is never the shortest one - Checks if Wave 3 is bigger than either Wave 1 or wave 5 or both.

Now, these are the specific rules for Impulse Waves on top of Motive Wave conditions
• Wave 4 never moves beyond the end of Wave 1 - meaning wave 1 and wave 4 never overlap on price scale.
• Wave 1, 3, 5 are all not extended. We check for retracement ratios of more than 200% to be considered as extended wave.

Below are the conditions for Diagonal Waves on top of Motive Wave conditions
• Wave4 never moves beyond the start of Wave 3 - Wave 4 retracement is less than 100%
• Wave 4 always ends within the price territory of Wave 1 - Unlike impulse wave, wave 4 intersects with wave 1 in case of diagonal waves. This is the major difference between impulse and diagonal wave.
• Waves are progressively expanding or contracting - Wave1 > Wave3 > Wave5 and Wave2 > Wave4 to be contracting diagonal. Wave1 < Wave3 < Wave5 and Wave2 < Wave4 to be expanding diagonal wave.

Here is an example of diagonal wave projection

Here is an example of impulse wave projection

Release Notes:
Update Libraries

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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