Labelling Elliott Waves - Aussie Stock Forums

1. ## Labelling Elliot Waves

Ive labelled in 1,2,3,4,---etc rather than A,B,C in the ORDS corrective move.

I'm interested in the more experienced Elliot Wavers as to how they would label this immediate move.I've posted up 2 options which if any is correct?

Red and Blue

And How about SRK below that?

2. ## Re: Labelling Elliot Waves

Tech,

Last time that question was asked in public, there was an all-in brawl requiring the attendance of riot police and several ambulances. haha!!

But as a principle, only impulsive waves are labeled with numbers, corrective waves are labelled with letters.

Now I'm outta here...fast! LOL

3. ## Re: Labelling Elliot Waves

Hi Tech,

If you want an EW view on the XJO & a detailed daily commentary to go with the chart below, take a look here:

4. ## Re: Labelling Elliot Waves

Originally Posted by wayneL
Tech,

Last time that question was asked in public, there was an all-in brawl requiring the attendance of riot police and several ambulances. haha!!

But as a principle, only impulsive waves are labeled with numbers, corrective waves are labelled with letters.

Now I'm outta here...fast! LOL
True but the smaller patterns that form within the impulsive waves can be marked with letters a b c being called the fractals within any of the major waves to five , then the three corrective waves A, B, C.

Bob

5. ## Re: Labelling Elliot Waves

Ive labelled in 1,2,3,4,---etc rather than A,B,C in the ORDS corrective move.
Yeh understand that.Thought Id made it clear but obviously not so here it is again.

From what I know of Elliot wave counts they can be subjective as the count on your chart shows,with neither being the most correct or entirely incorrect,more so correct until proven incorrect.

6. ## Re: Labelling Elliot Waves

Originally Posted by wayneL
Tech,

Last time that question was asked in public, there was an all-in brawl requiring the attendance of riot police and several ambulances. haha!!

But as a principle, only impulsive waves are labeled with numbers, corrective waves are labelled with letters.

Now I'm outta here...fast! LOL
Too late Wayne, you're nicked!! The Wave A and C of an ABC correction can be impulsive with five waves, so you can label those minor degree waves as i, ii, iii etc. btw, sorry I'm not an experienced EW person but until Nick or Wavepicker or MW turns up again the blind will have to lead the blind.

The best place to start is to state the 3 core rules, clarify what they mean and then look at the main guidelines (for example, wave4 cannot overlap the top of wave1, that means the end of wave 4, which would be wave C, so we could see waveA retrace below wave1).

Nick's books Adaptive Analysis is a great start, that's what got me hooked, eventhough I'd read EWI stuff and other material before Nick is the person who really made it simple, I remember memorising the rules and guidelines and re-reading several times, still make mistakes though. But note that it is not meant to be a full study of EW.

Other tips I've found useful are:

Look for the clean, strong impulsive waves and distinguish them from the choppy, messy corrective waves. Also wave 4's are normally triangular in pattern but I've seen some 'triangles' which don't really look like triangles- subjectivity comes into it. Also look for proportions, a nice long wave 3 is always a pleasure to observe.

As with most charts start the labeling with the big picture and drill down to the smaller time frames, see the BMX thread for some mistakes I made and for Nick's corrections. However, when I can't see a clear count on a daily chart, for example, it helps to drill down further to see how that structure has subdivided, that'll help you to see the labels for the higher time frame too. Using the core rules really helps to plan your trade and set stops. The fibonacci retracement levels also help.

Ok, maybe I shouldn't have said all that since I'm only learing but guess it give an expert the opportunity to correct me.

There's another thread on EW, I'll post a link to a free book (recomended by Nick Radge) there for you to have a look at Tech, and for others, isn't ASF just great!!??

7. ## Re: Labelling Elliott Waves

The important element of EW is validate/invalidate. A 5-wave pattern is followed by a 3-wave or a set of 3-wave patterns. Once you have picked up on the pattern you know where the validate/invalidate points are and in turn you trade around those. You can assess what is a low risk entry and what is not.

Here is a chart of CBA but my commentary from 25/5, so 15 days ago. Note yesterdays low was exactly \$42.00.

"25/5:
We currently have a clear 3-wave structure down. I have labeled it waves-i through -ii and I view this as wave-iii. However, should \$45.80 be breached on the bounce then we will conclude that this is a corrective move of either a larger corrective move or that the top has in fact not yet been seen. Its a core rule in Elliott Wave that the wave-i low is not overlapped by wave-iv. If \$45.80 holds and prices swing lower then I would expect, at this stage, a move toward \$42.00 being a wave-v and in turn a higher degree wave-1 for further declines. I retain a bearish view until the pattern is invalidated."

So what do we have now? The question is, "what happens after a 5-wave decline?" We get a 3-wave counter trend rally. How far can that rally travel before it invalidates the larger count? Validate/Invalidate.

8. ## Re: Labelling Elliott Waves

I would consider the ceiling to be the value of "iii" but I have never studied E/W, if I was short that is when I would bail.

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