Sentiment Indicators

Elliott’s Three Guidelines


Jul.20.2013

prev
-
-
next

Mr. Elliott has also come up with many guidelines. Here we will introduce the three most important ones. Unlike the three eternal rules, these guidelines can be broken. It’s like how you guide your husband to behave around the house, but he won’t get into extreme trouble if he forgets to take the garbage out right at 9 p.m.

Guideline 1. When wave 3 is the longest impulse wave, wave 5 will be approximately equal to wave 1.

Guideline 2. The forms of wave 2 and wave 4 are alternative. If wave 2 is a sharp correction, wave 4 will be flat. If wave 2 is flat, wave 4 will be sharp.

Guideline 3. After a five-wave impulse advance, the correction waves a, b, and c usually end in the area of the prior wave 4 low.

Danial Fig15 09

prev
next

Back to Top

Learn How to Grow Your Wealth