Brief Overview of Each of the Eleven Elliott Wave Patterns

Posted on July 16th, 2008 by admin, under FOREX strategy.

Brief Overview of Each of the Eleven Elliott Wave Patterns
Impulsive or Motive Waves - Moving with the Larger Trend

Impulsive or Motive waves are always moving with the larger trend,consist of five waves, and are labeled 1-2-3-4-5.

Impulse: (IM)

An Impulse is a five-wave pattern, labeled 1-2-3-4-5, moving in thedirection of the larger trend.

Elliott Wave Patterns 1

Diagonal – also known as a Diagonal Triangle: Leading (LD) and Ending (ED)

A Diagonal is a common 5-wave Motive pattern, labeled 1-2-3-4-5, that moves with the larger trend. Diagonals move within two contracting channel lines drawn from Waves 1 to 3, and from Waves 2 to 4.

There exist two types of Diagonals: Leading Diagonals (LD) and Ending Diagonals (ED). They have a different internal structure and are seen in different positions within the larger degree pattern.

Ending Diagonals are much more common than Leading Diagonals.

Elliott Wave Patterns 2
Ending Diagonal

Corrective Waves - Moving Against the Larger Trend

Corrective patterns are either 3 - or 5 - wave patterns, labeled with letters, and move against the larger trend.

Zigzag:

A Zigzag is a 3-wave structure labeled A-B-C, generally moving counter to the larger trend. It is one of the most common corrective Elliott patterns.

Elliott Wave Patterns 3

Zigzag

Double and Triple Zigzags (DZ and TZ):

Double and Triple Zigzags are similar to Zigzags and are typically two or three Zigzag patterns strung together with a joining wave called an “x” wave. They are corrective in nature.

Triple Zigzags are rare.

Zigzags, Double Zigzags and Triple Zigzags are also known as Zigzag family patterns, or “Sharp” patterns.

Double Zigzags are labeled w-x-y, while Triple Zigzags are labeled w-x-y-xx-z.

Only a Double Zigzag is illustrated below.

Elliott Wave Patterns 4

Double Zigzag

Flat (FL):

A Flat is a three-wave pattern, labeled A-B-C, that moves mostly sideways. It is corrective, counter-trend and is a very common Elliott pattern.

Elliott Wave Patterns 5

Flat

Double and Triple Sideways:

Double and Triple Sideways patterns (also known as Double 3’s and Triple 3’s) are similar to Flats, and are typically two or three corrective patterns strung together with a joining wave, called an “x” wave. They are all corrective in nature.

Triples are rare.

Doubles are labeled w-x-y, while Triples are labeled w-x-y-xx-z.

Only a Double Sideways is illustrated below.

Elliott Wave Patterns 6

Double Sideways

Triangle (CT and ET):

A Triangle is a common 5-wave corrective pattern, labeled A-B-CD-E, that moves counter-trend.

Triangles move within two channel lines drawn from Waves A to C, and from Waves B to D.

A Triangle is either Contracting (CT) or Expanding (ET) depending on whether the channel lines are converging or expanding.

Expanding Triangles are rare.

Elliott Wave Patterns 7

Contracting Triangle

Degree or Time Frame:

An Elliott pattern may span minutes, days, years or even centuries. To indicate the approximate time span of an Elliott pattern, it is labeled with one of ten possible “degrees”.

  • Submicro – minutes to hours
  • Micro - hours to days
  • Subminuette - days to weeks
  • Minuette - days to months
  • Minute - weeks to months
  • Minor - weeks to quarters
  • Intermediate - months to quarters
  • Primary - months to years
  • Cycle - quarters to years
  • Supercycle - years
  • Grand Supercycle – decades or longer

 

Every Elliott Wave pattern is, in itself, the building block of a larger Elliott pattern, also known as the “next larger degree”.