In order to facilitate our identification of waves at different levels, Eliot’s theory has named waves of different levels from the highest level to the smallest level. They are:
• Super large circulation wave
• Big waves
• Cycling waves
• Basic waves
A super-large circulating wave is composed of a large circulating wave, and the large circulating wave is composed of a circulating wave, and the circulating wave is composed of a basic wave, and so on until the smallest sub-wave.
Well, in order to make things clearer, let us now look at the display of Eliot Wave in actual examples.
As you can see, the wave trend is not perfect in reality. You will also find that sometimes it is difficult to mark the level of waves. However, the longer you observe the graph, the greater your chance of identifying waves.
In addition, we will not leave you behind and let you count the waves alone. In the next lesson, we will provide you with some tips on how to correctly and easily identify waves, and at the same time, we will also teach you how to use Elliott waves to trade.