One has to understand Elliott wave as a logical move of the market, the rules are also logical, and trade set up is completely each individual perspective how they take the entries and exit based on their risk and reward basis
I think lots of people use trend line, but the presence of trend line is only to indicate what you are looking in it and how you forecast in the future,
How to read it very simplified way
This scrip is apparently showing has completed a logical move of 5 waves, 3 impulsive and 2 corrective forming wave 1
in order to confirm wave 1 has completed the move against it has to start with higher high closing with weak moves as counter move to previous impulse move which indicates the closing of higher high and progress of wave 2,
Again wave 2 is corrective move, so it involves 5 impulse wave ( Corrective impulse ) out which 3 are against the previous trend and 2 are in the direction of the previous trend
and when they complete 5 waves, it becomes very logical that the further upside move require participants interest, and suppose if it fails to get and give a reversal impulse, one can consider the end of the wave 2 and we can look for the start of wave 3
I have made small efforts in explaining how to identify reversal impulse in a call out, Now every impulse will get a pullback which we label them as a bc (internal labelling)
Labelling is only for our own understanding it's not necessary it has to be a bc, it can be your name capital or any latter
One of the logical explanation made by RN Elliott is wave 3 will be the longest and strongest it means that it will likely be fast in a move and larger in the price move
based on the hypothetical theory one can forecast is equal to 161.8% from the start of 1st impulse, all you have to do is take the Fibonacci tool and forecast it,
and how to confirm we are in wave 3 ??
It's again simplified way RN Elliott has answered in his book, the channelling system when you see brake of any channel consider it as wave 3 and look for impulse wave 4 (pull back wave) before heading in the same direction for wave 5
all it sounds good, but one has to practice identifying the start of impulse and end of the impulse
Well, all said, Good luck and keep learning,
I think lots of people use trend line, but the presence of trend line is only to indicate what you are looking in it and how you forecast in the future,
How to read it very simplified way
This scrip is apparently showing has completed a logical move of 5 waves, 3 impulsive and 2 corrective forming wave 1
in order to confirm wave 1 has completed the move against it has to start with higher high closing with weak moves as counter move to previous impulse move which indicates the closing of higher high and progress of wave 2,
Again wave 2 is corrective move, so it involves 5 impulse wave ( Corrective impulse ) out which 3 are against the previous trend and 2 are in the direction of the previous trend
and when they complete 5 waves, it becomes very logical that the further upside move require participants interest, and suppose if it fails to get and give a reversal impulse, one can consider the end of the wave 2 and we can look for the start of wave 3
I have made small efforts in explaining how to identify reversal impulse in a call out, Now every impulse will get a pullback which we label them as a bc (internal labelling)
Labelling is only for our own understanding it's not necessary it has to be a bc, it can be your name capital or any latter
One of the logical explanation made by RN Elliott is wave 3 will be the longest and strongest it means that it will likely be fast in a move and larger in the price move
based on the hypothetical theory one can forecast is equal to 161.8% from the start of 1st impulse, all you have to do is take the Fibonacci tool and forecast it,
and how to confirm we are in wave 3 ??
It's again simplified way RN Elliott has answered in his book, the channelling system when you see brake of any channel consider it as wave 3 and look for impulse wave 4 (pull back wave) before heading in the same direction for wave 5
all it sounds good, but one has to practice identifying the start of impulse and end of the impulse
Well, all said, Good luck and keep learning,
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