Elliot Wave
Instant elliot wave is a theory created by Ralp Nelson Elliot which states that chaotic market behavior remains predictable, the market moves in the formation of a recurring wave. This is because every trader almost always responds in the same way to the same event.
In trend condition, market movement will form 5 wave (wave) and 3 correction.
Example on rising trend:
Wave 1: The price starts to move up, this happens because some traders feel it's time to buy, or it's time for the price to go back.
Wave 2: The market is getting saturated and some traders take profit taking so that the price could go down, but not to the lowest point.
Wave 3: Price moves long, because other traders begin to realize that there is a trend, so follow the trend.
Wave 4: The price drops again as some traders take profit taking because the rate is too high and will reverse direction.
Wave 5: The price goes up as some traders see a clear trend, so they think to follow the trend, even though it is already very overbought.
elliot wave
Correction to 1: Price back direction because it is too high and overbought.
2nd Correction: Rerun price up looking for balance to find starting-point.
Correction to 3: Price Down is longer than correction to 1, this is the actual correction form.
After forming 5 Wave and 3 Corection, then price will usually follow trend direction formed by 5 wave.
Support and Resistance Lines
Support is a price level where there is usually a selling pressure offset by a purchase, so the price is turned backwards.
Support is formed by drawing a line connecting at least 2 (two) lowest points parallel.
Resistance is a price level where purchasing pressure is usually offset by an increase in sales, so that price increases can be halted, even backward.
Resistance is formed by depicting at least 2 (the two highest points parallel.
support
The support line that switches the function to the resistance line is called the base line or the stepping line. Likewise the opposite of the resistance line that switches the function so support is called the base line.
This base line serves as a foothold for the market to move further.
In trend condition, market movement will form 5 wave (wave) and 3 correction.
Example on rising trend:
Wave 1: The price starts to move up, this happens because some traders feel it's time to buy, or it's time for the price to go back.
Wave 2: The market is getting saturated and some traders take profit taking so that the price could go down, but not to the lowest point.
Wave 3: Price moves long, because other traders begin to realize that there is a trend, so follow the trend.
Wave 4: The price drops again as some traders take profit taking because the rate is too high and will reverse direction.
Wave 5: The price goes up as some traders see a clear trend, so they think to follow the trend, even though it is already very overbought.
elliot wave
Correction to 1: Price back direction because it is too high and overbought.
2nd Correction: Rerun price up looking for balance to find starting-point.
Correction to 3: Price Down is longer than correction to 1, this is the actual correction form.
After forming 5 Wave and 3 Corection, then price will usually follow trend direction formed by 5 wave.
Support and Resistance Lines
Support is a price level where there is usually a selling pressure offset by a purchase, so the price is turned backwards.
Support is formed by drawing a line connecting at least 2 (two) lowest points parallel.
Resistance is a price level where purchasing pressure is usually offset by an increase in sales, so that price increases can be halted, even backward.
Resistance is formed by depicting at least 2 (the two highest points parallel.
support
The support line that switches the function to the resistance line is called the base line or the stepping line. Likewise the opposite of the resistance line that switches the function so support is called the base line.
This base line serves as a foothold for the market to move further.
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