Chart Reading Guide
How to Read Our Elliott Wave Charts
Our charts are designed to help you easily understand market movements and identify potential trading opportunities. Here’s a breakdown of the key components:
1. The Five-Wave Pattern (Impulse Waves)
- Waves 1, 3, and 5: These are impulse waves, moving in the direction of the larger trend.
- Waves 2 and 4: These are corrective waves, providing temporary pullbacks before the trend resumes.
- Wave 3: This is typically the strongest and longest wave in the pattern.
💡 Tip: When you see the market forming an impulse pattern, it suggests a continuation of the trend.
2. Three-Wave Correction (A-B-C Pattern)
- Wave A: The market starts to correct from the previous trend.
- Wave B: A partial reversal, creating a temporary pullback.
- Wave C: The final leg of the correction, often as large as Wave A.
💡 Tip: After the A-B-C correction completes, the market often resumes the original trend.
3. Labels and Annotations
- Numbers (1, 2, 3, 4, 5): Represent impulse waves.
- Letters (A, B, C): Indicate corrective waves.
- Support/Resistance Levels: Key price points where the trend may reverse or pause.
- Trendlines: Lines connecting highs and lows to show the market's direction.
4. Color-Coded Projections
- Green Zones: Indicate potential bullish targets.
- Red Zones: Signal caution areas where reversals could occur.
- Gray Zones: Areas of indecision or consolidation.
💡 Tip: Monitor these zones closely to plan entries and exits effectively.
5. How to Use Our Forecasts
- Buy Signal: When an impulse wave forms and price breaks resistance.
- Sell Signal: During corrective waves or when price approaches a resistance level.
- Hold: When price is in consolidation, waiting for a breakout in either direction.
Our Elliott Wave charts simplify complex market movements, making it easy for you to spot trends, reversals, and trading opportunities. With practice, you’ll gain the skills to predict shifts confidently and trade like a pro!