What is Elliott Wave Theory?

The Elliott Wave Theory is a detailed description of how groups of people behave. It reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific and measurable patterns.

One of the easiest places to see the Elliott Wave Principle at work is in the financial markets, where changing investor psychology is recorded in the form of price movements. If you can identify repeating patterns in prices, and figure out where the price is in those repeating patterns today, then you can predict where price is most likely going to be next, based on specific Elliott wave rules.

Using the Elliott Wave theory is an exercise in probability. An Elliottician is someone who is able to identify the markets structure and anticipate the most likely next move based on our position within those structures: Elliott wave corrective pattern or Elliott wave impulse. By knowing the Elliott wave patterns, you’ll know what the markets are likely to do next and (sometimes most importantly) what they will not do next. By using the Elliott Wave theory, you identify the highest probable moves with the least risk.

Learn The Elliott Wave Theory

We have educational on-line Elliott wave video material about Elliott wave theory rules, Elliott wave impulse, Elliott wave corrections and even Elliott wave trading. Elliott wave course is nearly 7 hours long in which we share information and knowledge that we found useful over the last 12 years.


We know that Elliott wave theory may not be easy to understand, but that’s why we prepared this program. We explain the Elliott wave rules, patterns such as elliott wave corrective patterns, abc correction, ending diagonal, expanded flat and others as simple as possible with illustrations and real examples.


Besides our videos we also recommend a book Elliott Wave Principle: Key to Market Behavior thanks to Robert R Prechter.


Elliott Wave Theory Course: Educational videos

7h’s of educational videos

Our educational videos are recommended to students who already understand the basics of technical and Elliott Wave analysis but want to take it to the next level


WHAT YOU WILL LEARN WITH ELLIOTT WAVE COURSE


1.       EWS Part 1: What Is Elliott Wave Theory?

In this video we talk about Elliott wave theory in general. The Elliott wave principle was discovered by Ralph Nelson Elliott who was an American accountant and author, whose study of stock market data led him to develop the Elliott wave analysis, a description of the cyclical nature of trader psychology and a form of technical analysis. It identifies trends and reversals in financial markets.

2.       EWS Part 2: Wave Theory At Work?

In the second video we want to look at some real examples of Elliott wave theory and predictions that we analyzed in the last few years, to show you how Elliott wave theory works, and why it works. We will look at some different Elliott wave patterns, before and after Elliott wave charts on different markets.

3.       EWS Part 3: Motive Wave – “Impulse”

We will go through the Elliott wave rules and guidelines of an impulse, how to identify an impulse Elliott wave pattern, what to look for and what it really matters. We will show you the Elliott wave channeling technique and how to apply the Fibonacci on Elliott wave impulse waves (when and when wave 2 can end, what to look for in wave 3, wave 4 and where and how to project end of wave 5).

Elliott wave impulse wave is structured by five subwaves in the direction of a stronger trend. The picture below shows a five wave move to the upside, meaning that price is in uptrend.

Elliott Wave pattern

4.       EWS Part 4: Motive Wave – “Elliott Wave Diagonal Triangles

We go through rules and guidelines of Elliott wave diagonal triangles, how to identify the diagonal triangle, what are the personality of those patterns. Here we show you how to take advantage of these structure and prices, how and when to take action and what to expect when Elliott wave diagonal is completed, and more important when it is completed. We will look at some samples on real charts.


Elliott wave diagonal is a common 5-wave motive pattern labelled 1-2-3-4-5 that moves with the larger trend. Diagonals move within two contracting channel lines drawn from waves 1 to 3, and from waves 2 to 4. There are two types of diagonals: leading diagonals and ending diagonals. They have a different internal structure and are seen in different positions within the larger degree pattern. Ending diagonals are much more common than leading diagonals.

Elliott wave diagonal

5.       Elliott Wave School Part 5: Corrections

We walk you through the rules and guidelines of different type of Elliott wave corrections, how to identify them, what is the personality of each Elliott wave corrective abc pattern, what to look for when trying to call an end of the Elliott wave corrective pattern, and when to take action. Here we describe everything with Elliott wave channeling technique as well as the Fibonacci tool for each corrective pattern. We will also talk a lot about confirmation levels, what is this and why it matters. We take a look at some of the trading examples, those that worked out well and some that didn’t, and the reasons why.

Elliott wave corrective patterns are labeled with letters, and move against the larger trend. We know the following Elliott wave patterns:

Elliott wave zig zag
Elliott wave zig-zag
Elliott wave flat
Eliott wave flat (regular flat, expanded flat, running flat)
Elliott wave combinations
Elliot Waves Combinations
Elliott wave triangle
Elliot Wave Triangle

6. Elliott Wave School Part  6: 10. Trading Tips

We will give you a list We will give you a list of 10. Elliott wave trading tips that we found useful when analyzing, tracking and trading markets in combination with the Elliott wave analysis.

7.  Additional Video 1. (webinar recording)

Step by step process presented on Elliott wave trading examples and how to define your risk-comfort level.

8. Additional Video 2. (webinar recording)

Quick Review of rules for a correction and impulse, and trading examples.

9. Additional Video 3. (old technical video analysis)


This is one of our videos in which I cover technical analysis for DAX with different market tools in combination with the EW theory.


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