Learn
  • WELCOME TO LEARN
  • 🐔INTRODUCTION TO FINANCIAL MARKETS
    • ▫️All Lessons
      • 🔹Why should you have an Investor mindset?
      • 🔹Financial Markets and its Functions
      • 🔹Financial Markets - Business & Career prospects
  • 📊Advanced Market Analytics (AMA)
    • ▫️All Lessons
      • 🔹Trading Terminal
      • 🔹Charts & Candlesticks
      • 🔹Candlestick Patterns
      • 🔹Price Swings
      • 🔹Wave Patterns & Trend
      • 🔹Patterns
      • 🔹Divergence
      • 🔹Fibonacci Retracement & Extension
      • 🔹Support & Resistance
  • ✨Deeper Study on Advanced Market Analytics
    • ▫️All Lessons
      • 🔹What are charts?
      • 🔹Candlestick Charts in detail
      • 🔹Candlestick Patterns
      • 🔹Fractals & Degrees
      • 🔹Price Swings
      • 🔹Wave Patterns with Motive Wave Rules and Guidelines
      • 🔹Trend
      • 🔹Patterns
      • 🔹Corrective Patterns
      • 🔹Divergence
      • 🔹Fibonacci Retracement
      • 🔹Combining Time Frames
      • 🔹Labelling Waves
      • 🔹Support and Resistance
  • ⚔️Strategies
    • ▫️All Lessons
      • 🔹Entry Condition & Money Management
      • 🔹Top Down Analysis
      • 🔹Strategies with Entry & Exits
      • 🔹Trade Management - Profit Target
  • 📈Elliott Wave Principle
    • ▫️All Lessons
      • 🔹1. Introduction
        • 🔸1.1 The Broad Concept
        • 🔸1.2 Basic Tenets
        • 🔸1.3 Wave Mode
        • 🔸1.4 Essential Design
        • 🔸1.5 Wave Function
        • 🔸1.6 Detailed Analytics
        • 🔸1.7 Corrective Waves
        • 🔸1.8 Additional Terminology (Opition)
      • 🔹2. Motive Waves
        • 🔸2.1 Guidelines Of Wave Formation
        • 🔸2.2 Depth Of Corrective Waves
        • 🔸2.3 Wave Equality
        • 🔸2.4 Volume
        • 🔸Summary Rules And Guidlines For Wave
        • 🔸2.6 Learning The Basics
      • 🔹3. Historical and Mathematical Background of the Wave Principle
        • 🔸3.1 Historical And Mathematical Background Of The Wave Principle
        • 🔸3.2 The Fibonacci Sequence
        • 🔸3.3 The Golden Section
        • 🔸3.4 The Meaning Of Phi
        • 🔸3.5 Fibonacci In The Spiraling Stock Market
        • 🔸3.6 Fibonacci Mathematics In The Structure Of The Wave Principle
      • 🔹4. Elliott Applied
        • 🔸4.1 Ration Analysis And Fibonacci Time Sequences
        • 🔸4.2 Applied Ratio Analysis
        • 🔸4.3 Multiple Wave Relationships
        • 🔸4.4 Benner's Theory
      • 🔹5. Long Term Waves and an Up To-Date Composite
        • 🔸5.1 Long Term Waves And An Up To Date Composite
        • 🔸5.2 Long Term Waves
        • 🔸5.3 The Supercycle Wave From 1932
      • 🔹6. Stocks and Commodities
        • 🔸6.1 Stocks And Commodities
        • 🔸6.2 Commodities
        • 🔸6.3 Gold
      • 🔹7. Other Approaches to the Stock Market & Their Relationship to The Wave Principle
        • 🔸7.1 Their Relationship To The Wave Principle
        • 🔸7.2 Cycles
        • 🔸7.3 Technical Analysis
      • 🔹8. Elliott Speaks
        • 🔸8.1 Elliot Speaks
        • 🔸8.2 Nature's Law
      • 🔹9. Appendix
        • 🔸April 6, 1983 (Continued)
        • 🔸April 6, 1983
        • 🔸August 18, 1983
        • 🔸Double Three Correction Ending in August 1982
        • 🔸January 1982
        • 🔸Long Term Forecast Update 1982 1983
        • 🔸October 6, 1982
        • 🔸September 13, 1982
      • 🔹10. Glossary
        • 🔸Glossary Of Terms
    • Related Videos
Powered by GitBook
On this page
  • What are waves ?
  • Trend – Up trend and down trend
  • How to know the momentum of a Trend?
  • Correction part of a trend

Was this helpful?

  1. Advanced Market Analytics (AMA)
  2. All Lessons

Wave Patterns & Trend

PreviousPrice SwingsNextPatterns

Last updated 2 years ago

Was this helpful?

What are waves ?

Swings are called waves when the swing legs are labelled by numbers or letters.

  • A wave pattern consists of minimum 3 waves : ABC. 5 wave patterns are 12345.

  • Knowing wave patterns helps to predict the next swing and trade it.

Trend – Up trend and down trend

A Trend is when the price swings/waves move in one direction

  • A single swing is not a trend

  • A trend moves in two sorts of patterns

Bull trend (uptrend): a sequence of low (L), high (H), higher low (HL), higher high (HH)

Bear trend (downtrend): a sequence of H, L, Lower high (LH), Lower Low (LL)

Identifying the strength of Trend

The momentum of the Trend - shows the rate of change in price movement over a period

  • Good momentum can lead to fast moves so a big win.

  • The probability of the expected direction with the trend is high

  • A weak trend or weakening momentum can provide trading opportunities for the reversal of the trend.

How to know the momentum of a Trend?

  1. Moving averages are used to analyze if a trend is going strong or weak.

  1. Supertrend - Another trend following indicator more or less similar to Moving Averages called Supertrend. Green indicates bullish momentum and Red is for bearish momentum.

  1. Trend Channel

Broad Channel and steep channel

Steep channel – higher momentum

Broad channel – slower momentum or a larger trend

A break of the channel indicates a slowing down of momentum and the price will usually target the larger channel

Correction part of a trend

  • Non-trending movements

  • Price will be swinging up and down of the moving average usually a bigger one like 200 moving average.

  • After a range, the price can also reverse the previous trend instead of resuming it.

  • Pullbacks are a retracement of the trend.

  • When expecting a Trend, the pullbacks or correction of a trend will not retrace the corresponding impulsive wave by more than 100% whereas a correction can be a trending or non-trending pattern.

  • Support resistance, channels, moving averages and Fibonacci retracements are tools used for trading the pullback levels

📊
▫️
🔹
Skill to make money will always be in demandpoolsifi
Logo