Technical - Elliott Wave

Correction
- Will not take out the extreme that began the prior trend and make new low/high.
- Usually at least 3 sections
- Wave C should exceed Wave A extreme, MKT makes a new low/high and then trades back into the range of the prior section (Reinforce with stochastics momentum reversal), MKT trades beyond Wave B extreme signals correction should be complete.

Trend
- Usually at least 5 sections
- Wave 2 cannot trade beyond beginning of Wave 1, Wave 3 cannot be the shortest wave. Wave 4 cannot make a daily close into closing range of Wave 1.
- If a correction is greater in time & price than any previous correction of the trend section, it is counted as a completed wave. When a trend is complete, a correction greater than Wave 2 or Wave 4 corrections should be made.
- MKT trades beyond Wave 3 extreme, trend is in final stage. Use stochastics momentum reversal to reinforce Wave 5 position. MKT trade beyond Wave 4 signals the end of the 5 wave trend.
- A complete trend is followed up by either a correction or new trend in opposite direction

Wave 2 = .618 to .786 of wave 1
Wave 3 = 1.618 of wave 1
Wave 4 = .236 to .382 of wave 3
Wave B = .618 to 1,382 of wave A
Wave C = 1 to 1.618 of wave A



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