I've counted off a possible 5th impulse wave for XRP. I'm also studying Elliot Waves and have gathered a few high-level points to keep in mind while we watch this bull market germinate.
The Elliott Wave Principle, is a technical analysis theory that describes the movement of financial market prices based on investor psychology and natural patterns.
1. The Elliott Wave Principle states that market movements are patterned and governed by the psychology of crowds, following a specific structure of impulsive (motive) and corrective waves.
2. Impulsive waves occur in a 5-wave pattern with waves 1, 3, and 5 being in the direction of the main trend and waves 2 and 4 being counter-trend corrections.
3. Corrective waves occur in 3 waves and can take the form of zigzags, flats, or triangles. They often alternate in pattern between sharp (zigzag) and sideways (flat or triangle).
4. The patterns are fractal, meaning they occur on all degrees of trend from smallest to largest time frames.
5. Wave personalities, Fibonacci relationships, volume, channeling guidelines, and other technical rules help identify the specific waves and forecast future movements.
The Elliott Wave Theory, developed by Ralph Nelson Elliott in the 1930s, is a fascinating approach to understanding price movements in financial markets.
Impulse Waves:
Impulse waves consist of five sub-waves that move in the same direction as the trend of the next-largest degree. These waves represent the strongest part of a trend. Impulse waves are often labeled as 1, 2, 3, 4, and 5. They are nested within a self-similar fractal, creating larger patterns.
Corrective Waves:
Corrective waves oppose the larger trend and aim to correct the preceding impulse waves.
They come in various forms, including zigzags, flats, triangles, etc.
Here are more specific corrective wave patterns:
Zigzag:
Wave B in a zigzag typically retraces 38% to 79% of wave A.
If wave B is a running triangle, it usually retraces 10% to 40% of wave A.
If wave B is a zigzag, it typically retraces 50% to 79% of wave A.
When wave B is a triangle, it usually retraces 38% to 50% of wave A.
Flat:
In a flat correction:
Wave B must retrace at least 90% of wave A (a strict rule).
Wave B usually retraces between 100% and 138% of wave A.
Wave C is usually 100% to 165% as long as wave A.
An expanded flat occurs when wave B is more than 105% as long as wave A, and wave C extends beyond the end of wave A.
Expanding Triangle:
Subwaves B, C, and D in an expanding triangle:
Each retraces at least 100% but no more than 150% of the previous subwave.
Usually, they retrace 105% to 125% of the preceding subwave
The Elliott Wave Principle, is a technical analysis theory that describes the movement of financial market prices based on investor psychology and natural patterns.
1. The Elliott Wave Principle states that market movements are patterned and governed by the psychology of crowds, following a specific structure of impulsive (motive) and corrective waves.
2. Impulsive waves occur in a 5-wave pattern with waves 1, 3, and 5 being in the direction of the main trend and waves 2 and 4 being counter-trend corrections.
3. Corrective waves occur in 3 waves and can take the form of zigzags, flats, or triangles. They often alternate in pattern between sharp (zigzag) and sideways (flat or triangle).
4. The patterns are fractal, meaning they occur on all degrees of trend from smallest to largest time frames.
5. Wave personalities, Fibonacci relationships, volume, channeling guidelines, and other technical rules help identify the specific waves and forecast future movements.
The Elliott Wave Theory, developed by Ralph Nelson Elliott in the 1930s, is a fascinating approach to understanding price movements in financial markets.
Impulse Waves:
Impulse waves consist of five sub-waves that move in the same direction as the trend of the next-largest degree. These waves represent the strongest part of a trend. Impulse waves are often labeled as 1, 2, 3, 4, and 5. They are nested within a self-similar fractal, creating larger patterns.
Corrective Waves:
Corrective waves oppose the larger trend and aim to correct the preceding impulse waves.
They come in various forms, including zigzags, flats, triangles, etc.
Here are more specific corrective wave patterns:
Zigzag:
Wave B in a zigzag typically retraces 38% to 79% of wave A.
If wave B is a running triangle, it usually retraces 10% to 40% of wave A.
If wave B is a zigzag, it typically retraces 50% to 79% of wave A.
When wave B is a triangle, it usually retraces 38% to 50% of wave A.
Flat:
In a flat correction:
Wave B must retrace at least 90% of wave A (a strict rule).
Wave B usually retraces between 100% and 138% of wave A.
Wave C is usually 100% to 165% as long as wave A.
An expanded flat occurs when wave B is more than 105% as long as wave A, and wave C extends beyond the end of wave A.
Expanding Triangle:
Subwaves B, C, and D in an expanding triangle:
Each retraces at least 100% but no more than 150% of the previous subwave.
Usually, they retrace 105% to 125% of the preceding subwave