Elliott Wave Analysis | Complete Trading Guide

Professional Elliott Wave Analysis Suite — Complete Wave Structure Reference Guide

5-Wave Impulse Detection with Full Rule Validation

ABC Corrective Pattern Detection (Zigzag, Flat, Triangle)

Always-Visible Zigzag with Smart Coloring

Dynamic Wave Labels with Prices

Fibonacci Retracement & Extension Levels

Wave Projection Zones

Quality Scoring System

Wave Degree Support

Channel Detection

Time/Price Ratio Analysis

═══ WAVE STRUCTURE REFERENCE - BULLISH IMPULSE ═══

📈 The Bullish Impulse Story

Imagine you're watching a stock that has been beaten down. Suddenly, smart money starts accumulating. This is where our story begins at Wave ⓪ - the cycle start.

Wave ① - The Awakening: The first believers step in. Volume is modest, skepticism is high. Most traders dismiss this as a "dead cat bounce." The price rises from the depths, but nobody's convinced yet. This wave establishes our base measurement for everything that follows.

Wave ② - The Shakeout: Fear returns! "I told you so!" cry the bears. Price retraces 38.2%-78.6% of Wave 1, shaking out weak hands. Critical Rule: Wave 2 can NEVER go below Wave 0! If it does, the count is invalid. This is where the strongest hands accumulate more.

Wave ③ - The Power Move: THIS is where fortunes are made! Wave 3 is typically the longest and strongest wave, extending at least 161.8% of Wave 1 (often 200%-261.8%). Volume explodes, news turns positive, and FOMO kicks in. Critical Rule: Wave 3 can NEVER be the shortest wave!

Wave ④ - The Breather: After the explosive Wave 3, traders take profits. This correction is usually shallow (23.6%-50% of Wave 3) and often moves sideways. Critical Rule: Wave 4 can NEVER enter Wave 1 territory! This overlap rule helps confirm your count.

Wave ⑤ - The Final Push: The last hurrah! Retail traders pile in, media coverage peaks, but smart money starts distributing. Watch for divergences - price makes new highs but momentum weakens. Wave 5 typically equals 61.8%-100% of Wave 1 in length.

RULES (Must Follow)

Wave 2 < 100% of Wave 1
Wave 3 ≠ shortest wave
Wave 4 ≠ overlap Wave 1

GUIDELINES (Should Follow)

Wave 2 & 4 alternate in form
Wave 3 often has highest volume
Wave 5 may show divergence

═══ WAVE STRUCTURE REFERENCE - BEARISH IMPULSE ═══

📉 The Bearish Impulse Story

The market has reached euphoric highs. Everyone is bullish, leverage is maxed out. Little do they know, the distribution phase has begun. Our story starts at Wave ⓪ - the market top.

Wave ① - The First Crack: Smart money exits while retail holds. "It's just a pullback!" they say. The first decline catches most off guard. Volume picks up on the downside. This initial drop sets the template for what's to come.

Wave ② - The Bull Trap: "See? It's recovering!" Hope springs eternal. Price bounces 38.2%-78.6% of Wave 1, drawing in buyers who think the dip is over. Critical Rule: Wave 2 can NEVER exceed Wave 0! This rally is a gift for bears to add shorts.

Wave ③ - The Crash: Reality hits hard. Wave 3 down is devastating - panic selling, margin calls, forced liquidations. This wave extends at least 161.8% of Wave 1 (often much more). News turns apocalyptic. Critical Rule: Wave 3 is NEVER the shortest! This is where most damage occurs.

Wave ④ - False Hope: A relief rally emerges from the carnage. "The worst is over!" traders proclaim. But this correction is shallow (23.6%-50% of Wave 3) and sets up the final leg down. Critical Rule: Wave 4 cannot rally into Wave 1 territory!

Wave ⑤ - Capitulation: The final flush. Despair reaches maximum. Those who held through everything finally give up. Watch for bullish divergences - price makes new lows but selling pressure wanes. This is where the next bull market is born.

═══ CORRECTIVE PATTERNS - ABC STRUCTURES ═══

ZIGZAG

(5-3-5)

Sharp correction, deep retracement

Wave A: 5 waves
Wave B: 3 waves (38.2%-78.6% of A)
Wave C: 5 waves (61.8%-161.8% of A)

Typically retraces 50%-61.8% of prior impulse

FLAT

(3-3-5)

Sideways correction

Wave A: 3 waves
Wave B: 3 waves (≈100% of A)
Wave C: 5 waves (100%-161.8% of A)

B often tests the start of A

EXPANDED FLAT

(3-3-5)

B exceeds start of A

Wave A: 3 waves
Wave B: 3 waves (>100% of A)
Wave C: 5 waves (161.8%+ of A)

Strong C wave, often violent

TRIANGLE

(3-3-3-3-3)

Converging pattern before breakout

5 waves: A-B-C-D-E
Each wave has 3 sub-waves
Converging trendlines

Usually in Wave 4 or Wave B
Breakout: direction of larger trend

═══ COMPLETE ELLIOTT WAVE MARKET CYCLE (8 Waves Total) ═══

◄─── IMPULSE PHASE ───►◄─── CORRECTIVE PHASE ───►

IMPULSE (Waves 1-5)	CORRECTION (Waves A-B-C)
• Moves WITH the trend	• Moves AGAINST the trend
• 5-wave structure	• 3-wave structure (or complex)
• Waves 1,3,5 = motive	• Retraces 38.2%-61.8% of impulse
• Waves 2,4 = corrective	• Sets up next impulse

═══ FIBONACCI RELATIONSHIPS - QUICK REFERENCE ═══

WAVE	RELATIONSHIP	TYPICAL VALUES
①	Initial Move	Establishes the base measurement
②	Retraces W1	38.2% (shallow) 50.0% (common) 61.8% 78.6% (deep max)
③	Extends W1	161.8% 200.0% 261.8% 423.6%
④	Retraces W3	23.6% (shallow) 38.2% 50.0% (max)
⑤	Relates to W1	61.8% (min) 100% (W5=W1) 161.8% (extended)

WAVE	RELATIONSHIP	TYPICAL VALUES
Ⓐ	Initial Decline	Establishes correction base
Ⓑ	Retraces A	38.2% - 78.6% of A
Ⓒ	Relates to A	61.8% - 161.8% of A (often C = A)

═══ WAVE DEGREES (Largest to Smallest) ═══

DEGREE	IMPULSE LABELS	CORRECTIVE	TYPICAL DURATION
Grand Super	[I] [II]...	[A] [B]	Multi-century
Supercycle	(I) (II)...	(A) (B)	40-70 years
Cycle	I II ...	A B	1-10 years
Primary	Ⓘ Ⓘⓘ ...	Ⓐ Ⓑ	Months to years
Intermediate	(1) (2)...	(a) (b)	Weeks to months
Minor	1 2 ...	a b	Days to weeks
Minute	① ② ...	ⓐ ⓑ	Hours to days
Minuette	i ii...		Minutes to hours
Sub-Minuette			Minutes

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Projects high-probability targets for Wave 3 extensions (1.618 / 2.618) and Wave 5 truncations in real-time.

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