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Elliott Wave Principle


  • Author: [[Robert R. Prechter Jr.]]


Elliott called a sideways combination of two corrective patterns a “double three” and three patterns a “triple three.” — location: 563 ^ref-9672

wave two of an impulse is a sharp correction, expect wave four to be a sideways correction, and vice versa. — location: 707 ^ref-42990

Sideways corrections include flats, triangles, and double and triple corrections. They usually include a new price extreme, i.e., one that lies beyond the orthodox end of the preceding impulse wave. — location: 711 ^ref-31236

The idea of alternation within an impulse can be summarized by saying that one of the two corrective processes will contain a move back to or beyond the end of the preceding impulse, and the other will not. — location: 714 ^ref-11375

Alternation Within Corrective Waves If a correction begins with a flat a-b-c construction for wave A, expect a zigzag a-b-c formation for wave B, and vice versa — location: 719 ^ref-13608

Quite often, when a large correction begins with a simple a-b-c zigzag for wave A, wave B will stretch out into a more intricately subdivided a-b-c zigzag to achieve a type of alternation, as in Figure 2-4. Sometimes wave C will be yet more complex, as in Figure 2-5. The reverse order of complexity is somewhat less common. — location: 725 ^ref-29934

No market approach other than the Wave Principle gives a satisfactory answer to the question, “How far down can a bear market be expected to go?” The primary guideline is that corrections, especially when they themselves are fourth waves, tend to register their maximum retracement within the span of travel of the previous fourth wave of one lesser degree, most commonly near the level of its terminus. — location: 731 ^ref-23804

it is often the case that if the first wave in a sequence extends, the correction following the fifth wave will have as a typical limit the bottom of the second wave of lesser degree. — location: 753 ^ref-1173

On occasion, a flat correction or triangle, particularly if it follows an extension, will fail, usually by a slim margin, to reach into the fourth wave area (see Example #3). A zigzag, on occasion, will cut deeply and move down into the area of the second wave of lesser degree, although this almost exclusively occurs when the zigzag is itself a second wave. “Double bottoms” are sometimes formed in this manner. — location: 756 ^ref-26158