🔥Elliott's wave theory is complex but effective.
All price movements consist of 5 waves of growth (trend impulse)📈 and three waves of decline (correction) 📉
➡️The structure of any movement has the form 5-3.
The trend impulse (growth wave) has a 5-wave structure, consisting of 3 waves of growth📈 and two waves of decline📉.
✔️in the beginning, there is a solid upward movement (the first growth wave), after which the price decreases (the second wave). The second wave cannot go lower than the beginning of the first wave. Otherwise, it is not an impulse. Usually, the second wave is about 50% of the first wave.
✔️after the end of the second wave, the third wave of growth begins. And it is usually bigger than her. As you understand, it is possible to know that this is the third wave only when the price exceeds the point where the correction (the second wave) began. This is the most optimal time for buying.
✔️then goes the fourth corrective wave. It has the same properties as the second wave, i.e., it cannot go lower than the end of the first wave and is usually 50% of the third wave.
✔️then goes the fifth wave. This is the end of the bullish trend. The fifth wave usually goes beyond the end of the first wave.
Correction wave A-B-C consists of 3 waves—two waves of decline and one wave of growth.