Thursday, October 25, 2012

Elliottwave trading ,How channelling can identify web count

Look at the chart below

  • Its 4hrs chart above
  • see wave 1 started from 1.5450 Ended 1.5670
  • wave2 started from 1.5670 and ended on 1.5473
  • So I have drawn trendline connecting start of wave 1 and end of wave 2. It is the trend line of this chart of EUR/USD. Its up so the trend is up.
  • next draw a new line parallel to previous line from the end of wave1 , a channel made which is called base channel
  • third wave will end in the upper margin of this channel or may extend too far from this channel.
  • Look at the picture wave 3 form new high.
  • Now connect tip of wave 3 and extreme of wave 1, draw a parallel line to this , it makes ascending channel, it contains wave three.
  • wave 4 will end on the lower parallel line of this channel.
  • See tip of wave 3 and correction wave 4 a form new channel which is descending channel.
  • this descending channel will end up breaking upper line, which will make new wave five.
  • So now we are waiting for wave five impulsive wave, which is up, so the trend will be up after correction.
  • Wave 4 may touch line drawing from wave 1 and wave 2



Here some note


  • Corrective wave form various pattern, ABCD, ABC, triangle, diagonal , flat, zigzag,irregular
  • It takes more time than impulsive wave and choppy.
  • MA here are consolidate.


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