The Elliot's Wave

A typical wave pattern consists of five waves up in a bull markets, followed by three waves down.

The “five waves up” consists of three impulsive waves, 1, 3 and 5 and two corrective waves, 2 and 4.

The correction following the completion of the five waves unfolds in three corrective waves, a, b and c.

Guidelines:

1) Wave 3 cannot be the shortest of the impulsive waves

2) 1 and 4 should not overlap (unless in a diagonal triangle)

3) Wave 2 and 4 should alternate (if one is complex, the other should be simple)