In this thread I want to share some of my observations of Elliott Wave Analysis (EWA), in particular endings of waves.
On the provided picture I use such labels of the points to not confuse them with labels of the EWA waves.
When red wave K-L crosses starting point of green wave J-K, in my current opinion it means that wave J-K has for sure ended.
But considering previous price movement, wave J-K can not end alone, unless it was wave B of an irregular correction or triangle.
Assuming that wave J-K is part of some motive wave of larger degree, wave J-K can not end alone, with it has ended that motive wave of larger degree that consisted of some amount (maybe even all) of the purple waves.
So crossing of the starting point of wave J-K by wave K-L signifies ending of a motive wave of larger degree.
In that case, crossing of point M by blue wave that started at point N means that red wave M-N has for sure ended. Since in provided example wave M-N can not end alone (unless wave L-M was a truncated wave 5 of a motive wave), a whole red structure (K-L, L-M, M-N) was A-B-C correction, or J-K-L-M-N was a triangle A-B-C-D-E.
Thus blue wave that started at point N can be:
On the provided picture I use such labels of the points to not confuse them with labels of the EWA waves.
When red wave K-L crosses starting point of green wave J-K, in my current opinion it means that wave J-K has for sure ended.
But considering previous price movement, wave J-K can not end alone, unless it was wave B of an irregular correction or triangle.
Assuming that wave J-K is part of some motive wave of larger degree, wave J-K can not end alone, with it has ended that motive wave of larger degree that consisted of some amount (maybe even all) of the purple waves.
So crossing of the starting point of wave J-K by wave K-L signifies ending of a motive wave of larger degree.
In that case, crossing of point M by blue wave that started at point N means that red wave M-N has for sure ended. Since in provided example wave M-N can not end alone (unless wave L-M was a truncated wave 5 of a motive wave), a whole red structure (K-L, L-M, M-N) was A-B-C correction, or J-K-L-M-N was a triangle A-B-C-D-E.
Thus blue wave that started at point N can be:
- - Wave B (or part of wave B).
- - Wave X (or part of wave X) if complex correction is developing.
- - Wave 1 (or part of wave 1) of a motive wave of larger degree.
You are welcome to share your opinion on these observations, especially with examples of detailed trading plans
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