Introduction to Elliott wave principle: Faces of Waves Illustrated

It is no doubt that Elliott wave principle is one of the most powerful trading strategies.

But the principle is notorious in that it requires a lot of memorizations and pattern recognitions to be correctly and fully applied as trading strategies.

So, in this “Faces of Waves Illustrated” series, I am going to describe the characteristics of typical price patterns from the Elliott wave perspective.

Fortunately, I accumulated my analysis notes enough to give real life examples to each descriptions.

I will produce as much diagrams as possible so that more people can easily learn Elliott wave.

The production of good diagrams takes great amount of effort. So, production may be slow. Please be patient.

I will also try to make it easier for the reader to implement the study into concrete trading strategies. Namely I will try to answer these questions:

  • How to anticipate the emergence of “tradable” wave pattern before it completes revealing in the chart?
  • How to determine the loss cut price level, and how to measure the risk in the coming trade?
  • How to estimate the price target, and maximize the profit by “sitting tight”.
  • How to identify the potential reversal of the trend, and stay away from the danger.

I assume that the readers have some experience in trading. Therefore, I will not explain the basic trading terminologies unless they have significance in the context. I will gradually add supplemental glossary or links after I finish writing the first edition.

I hope Faces of Waves Illustrated (FWI) series will benefit many of you as well as myself.

Rational Move

Table of Contents (To be added)

  1. Team of six (and their siblings) – Basic 6 pattens of wave shapes
  2. Russian stacking dolls – Fractal nature of Elliott waves
  3. Motive wave – Anatomy and trade ideas
  4. Impulse wave (1) – Anatomy of an impulse wave
  5. Impulse wave (2) – When to anticipate. Trading strategy

Trading and investing carries a high level of risk and may not be suitable for everybody. Before deciding to trade or invest, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, software, tools, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that is not rendering investment advice.

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Rational Move always use stop loss orders, and this is the worse case potential loss over the capital for the currently open positions. This is unrealized loss is less or equal to the risk exposure.

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