Adjust the various forms of waves.
In Eliot’s view, there are as many as 21 adjustment wave patterns from simple to complex.
Are you thinking, “Ah? 21 types? I can’t remember all the forms. The basic Eliot wave theory has already made me dizzy!”
Don’t worry, classmates. The great thing about Elliott Wave is that you don’t need to fully grasp all the ABC callback patterns before you start foreign exchange transactions. Because they consist of only three very easy to grasp forms.
Now, let us look at these three forms. The example we gave this time is still using the Elliott wave theory in an upward trend, but if you are facing a downward trend, the Elliott wave theory is also applicable.
The zigzag pattern is formed in the rapidly changing market conditions, and the price trend is opposite to the previous wave. Generally speaking, wave B is the shortest compared to wave A and wave C. When a zigzag pattern fails to reach the normal target, the market will appear two consecutive, up to three zigzag patterns, the so-called double zigzag or triple zigzag.
The form of the platform indicates that the market is only in a wave of horizontal corrections. In general, in the platform form, the lengths of waves A, B, and C are approximately the same, but wave B may also reverse the trend of wave A, but wave C is difficult to reverse the trend of wave B. The platform form’s pull back force for the previous push wave is often less than the sawtooth form, and it often appears in a strong market trend, generally after the extension wave. Moreover, the stronger the market trend, the shorter the time for the platform to organize.
The triangular state is the only correction wave that runs in five waves. The trend of price is limited by the upward trend line and the downward trend line, and then forms a triangle. These triangular states can be subdivided into symmetrical triangles, ascending triangles, descending triangles, and extended triangles.
As we mentioned before, Elliott waves also belong to fractal form. Each main wave is composed of several secondary waves. do you understand? Let us show you another picture. The picture is the most convincing, isn’t it?
Did you see that the first, third, and fifth waves are all composed of a smaller level of 5 propulsion waves, while the second and fourth waves are composed of a smaller three waves of callback waves.
We need to always remember that each wave is composed of smaller waves. This situation will continue to repeat. Forever!