ELLIOTT WAVE THEORY | RULES | GUIDELINES | PRINCIPLES.
Elliott Wave Theory – I take the first step to study wave analysis and what the term wave means the wave is the basic concept of wave analysis.
And actually the whole market consists of waves from the tick and minutes charts to the higher of
timeframes a wave is a section of price movement from one change of direction to another.
The definition of a wave we can say that from the beginning of the trend to the first point of the trend breaking.
Here we have five waves labeled by numbers 1,2,3,4,5. (Impulse Waves)
And then three waves labeled by letters A, B, C. (Corrective Waves)
Elliott Wave Theory And Actionary and Reactionary.
An actionary wave is a wave that develops in the same direction as the main wave and hereinabove pictures red color shows actionary wave that is move-in same direction as the main wave.
In this above example we see that our five waves make up one big wave which we call the main wave or the main trend.
in other words, the main trend is a wave one level higher compared to small waves.
The main trend is directed upwards so all its sub-waves which also look up our actionary wave.
The reactionary waves are those waves that are looking in the direction opposing the main trend on an uptrend.
All reactionary waves look down here they are on a downtrend it’s exactly the opposite all actionary waves are looking down that is in the direction of the main trend.
And reactionary waves lookup that is against this and I think now everyone who has read this
the post will be able to understand which waves in the trend are actionary and reactionary.
Continued till Next Class…
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