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**1. The History of the Elliott Wave Theory**

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**2. Elliott wave pattern structure**

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**3. Elliott Wave Levels**

• Grand Supercycle: a time that lasts up to a century

• Super Cycle (large cycle): lasts several decades

• Cycle: lasts from one year to several years

• Primary: from a few months to 1 or 2 years

• Intermediate (intermediate): from a few weeks to a few months

• Minor (small): lasts for a few weeks

• Minute (quite small): lasts for several days

• Minuette: lasts for several hours

• Subminuette: within minutes

Tools for determining price targets and wave amplitudes

The two main tools that are used most effectively to perform this function are the price channel and the Fibonacci.

**Price channel**

The price channel consists of 2 trend lines that are parallel to each other and contain almost the entire range of price movements in one wave. In triangle wave patterns, these 2 trend lines are not parallel, but in this situation, we still consider it as a price channel.

This price channel tool is often used to identify waves of the same level, effective in fundamental impulse waves, Zigzag patterns or triangle wave patterns.

**Fibonacci**

While studying the mathematical properties of waves and wave patterns, Ralph Nelson Elliott came to the conclusion about the relationship between Fibonacci and Elliott waves that the Fibonacci sequence is the basis of the Elliott Wave Theory. The key Fibonacci retracement levels appear many times in the Elliott wave structure, including both the fundamental corrective and momentum patterns and in all of their more complex wave patterns.

To calculate the amplitude of the wave, at least the market has formed the first wave, which is wave 1 of impulse waves or wave A of corrective waves.

Wave 1 and A are the base waves, their length and slope will determine the amplitude of the next waves when using Fibonacci.

On the trading software, to determine the amplitude of the dynamic waves (3, 5), we use the Fibonacci Extension, the corrective waves (2, 4) use the Fibonacci Retracement.

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**Summary**

Elliott Wave Theory is not a trading technique, so there are no specific rules for determining entry or exit points. Moreover, it is very difficult to predict exactly how the Elliott wave will be structured because it has so many different variations. However, traders around the world still love to use Elliott Wave Theory by combining with other analytical tools that Fibonacci is a typical example, to both determine the next direction of the market’s movement, just determine their volatility range to have the most effective trading direction.

*A little bit about us:*

*A little bit about us:*

*Primexbt trading was born a few years ago but it has soon established itself in the financial market. Here, you can trade from cryptocurrencies, forex, commodities and indices… Outstanding advantages of Primexbt trading such as: beautiful interface, easy to use, low fees, leverage for home use. investors make money even when the market is down, complete set of supporting indicator tools, Primexbt convesting technology helps new investors to refer to trades of professional investors, Primexbt turbo technology allows demo investors before entering actual orders……*

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