Elliott Wave: do you count waves?
Elliott Wave theory says markets move in five-wave impulses and three-wave corrections — a framework traders have argued about for decades. The counts are subjective, the pattern recognition is powerful, and the camps never meet.
What's your experience?
- how you use wave counts in practice
- the rules that keep your counting honest
- why you gave it up, if you did
The chart patterns guide overlaps with some wave ideas.
Background: Head and shoulders, double tops and double bottoms explained
Reversal patterns are confirmed at a neckline. Learn how head and shoulders and double top patterns form, where confirmation comes and how measured targets are set.
When is a head and shoulders pattern confirmed?
When price closes beyond the neckline, the line through the pullback lows on either side of the head. Before that break, the pattern is incomplete.
How do you calculate a head and shoulders target?
Measure the distance from the top of the head to the neckline and project it from the point where price breaks the neckline. Treat the result as a rough guide.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…