Part II. Major EW patterns – Impulse move.
Commander in Pips: So, it’s time get back to work, tighten your belt and get started. Today we will talk about major EW patterns, which are an impulse move and a corrective move. Both of these moves Mr. Elliot called “waves”, so we will follow to this definition.
Elliot’s work tells us that a trending market moves in 5-3 wave pattern. First a 5 wave pattern is called “impulsive”, while the last 3 wave pattern is called “Corrective”.
So let’s take a look at the picture first, since it will be easier to explain it:
In this pattern 1, 3 and 5 “green” waves are leading or so called “Motive”. They call like that because they go together with the major trend, while 2 and 4 “black” waves are corrective. But do not mess up 2 and 4 corrective waves with ABC corrective pattern that we will discuss in later parts of this chapter. While ABC is a corrective pattern that follows an Impulse move, the 2 and 4 waves are corrective moves inside the Impulse move itself.
- 09-13-2011, 12:41 PM #1Administrator
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Chapter 16, Part II. Major EW patterns – Impulse move.
Last edited by AsstModerator; 10-17-2011 at 11:28 PM.