Elliott Wave Analysis by EWF

[Elliottwave-Forecast]

USDCAD Elliott Wave View: Flat correction

Short term Elliott Wave view in USDCAD suggest the decline to 1.322 ended Intermediate wave (X). The rally from there is unfolding as a double three Elliott Wave structure where Minute wave ((w)) ended at 1.3525 and Minute wave ((x)) ended at 1.3406. Minute wave ((w)) is subdivided as a Flat Elliott wave structure where Minutte wave (a) ended at 1.3338 and Minutte wave (b) ended at 1.3258. Near term, pair is within Minutte wave (x) Flat pullback to correct the cycle from 4/24 low towards 1.346 – 1.3498 area before the rally resumes. We don’t like selling the proposed pullback and expect buyers to appear once wave (x) pullback is complete in 3, 7, or 11 swing as far as pivot at 1.3406 stays intact.

USDCAD 1 hour Elliott Wave Chart 04/27/2017




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[Elliottwave-Forecast]

USDCAD Elliott Wave View: Extending Higher

Short term Elliott Wave view in USDCAD suggest the decline to 1.322 ended Intermediate wave (X). The rally from there is unfolding as a double three Elliott Wave structure where Minute wave ((w)) ended at 1.3525 and Minute wave ((x)) ended at 1.3406. Minute wave ((w)) is subdivided as a Flat Elliott wave structure where Minutte wave (a) ended at 1.3338 and Minutte wave (b) ended at 1.3258. Pair is currently within Minute wave ((y)) which is unfolding as a double three Elliott Wave structure where Minutte wave (w) ended at 1.3626 and Minutte wave (x) FLAT ended at 1.3526. Near term, while pullbacks stay above 1.3406, expect pair to extend higher towards 1.3714 – 1.3787 area to end cycle from 4/13 low before a larger pullback in 3 waves can be seen at minimum to correct cycle from 4/13 low. We don’t like selling the proposed pullback.

USDCAD 1 hour Elliott Wave Chart 04/28/2017

 

[Elliottwave-Forecast]

Freeport McMoRan (FCX) Outlook Turning Bullish

Freeport McMoRan Incorporation (NYSE: FCX) is the world’s largest publicly traded copper and molybdenum producer and it’s also a major producer of gold but almost 70% of revenues are from the sale of copper. The Phoenix, Arizona-based companyis primarily engaged in mineral exploration and development, mining and milling of copper, gold, molybdenum and silver, as well as the smelting and refining of copper concentrates.

In the recent 2 months, Freeport’s shares dropped 27% as it had interrupted the production in Grasberg mine which is the largest gold mine and the third largest copper mine in the world because of a regulatory restrictions in Indonesia on its copper concentrate exports. However, the company recently announced that the matter was resolved as it’s looking to protect and support its past & long-term investment plans in Indonesia and it’s now resuming exports of copper concentrate from. The recent actions helped its stock to bounce, but the move is still weak so let’s take a look a the technical picture using Elliott Wave Theory.

FCX Elliott Wave View

Weekly Chart: FCX did a double three structure from both 2007 & 2011 peaks and managed to reach both equal legs target at $9.15 & $4.16 with 7 swings already in place before finding a bottom early last year. Since then the stock managed to rally and it both cycles from the peaks already ended even the price level still didn’t break above the descending trend-line . Consequently the sentiment for the stock is turning bullish and it should be looking for a bigger 3 waves correction toward the 50% area around $32.



Daily Chart: The stock is showing 5 swing bullish sequence from January 2016 low and will remain supported as long as October 2016 low keeps holding. Currently it ended a flat correction in wave ((X)) and would ideally resume the move to the upside looking for a target at equal legs area 19.82 – 22.24 to end 7 swings sequence around the weekly trend-line and start a 3 waves pullback.



The short term turn around for FCX would happen if the stock has already ended the cycle from January 2016 low, in that case it will be only doing 3 waves bounce against the peak before another leg lower take place toward the 50%-61.8% Fibonacci area around $10.3 – $8.71 then the stock find buyers again as long as pivot at 3.52 is holding.



Recap:
The mining giant Freeport McMoRan is in a good financial shape despite the Grasberg mine issue in Indonesia and the technical outlook for its stock is turning to the upside as long as the 2016 low at $3.52 keeps holding. This means unless the company go bankrupt then no matter what path it will take in the near term, it will end up bouncing to higher level around $20 at first stage either from current levels or from $10 area then it will be looking to extend toward $33 later on.

 

[Elliottwave-Forecast]

Trump tax cut can create the last rally since 2016

As part of President’s Trump campaign pledge, he wants to sharply reduce the tax rate for all businesses from multinational corporations to mom-and-pop shops to 15%. Treasury Secretary Steven T. Mnuchin said this is the biggest tax cut and the largest tax reform in the U.S history. Currently the U.S. corporate tax rate is 35% and it is the highest among developed economies. President Trump also plans to simplify and reduce individual tax rate with the highest individual tax rate dropping to 25%.

The stock market has stalled lately after hitting a record on March 1 due to the worries about soft economic data, the absence of clarity on Trump’s policies, and concern over his failure to push through a healthcare bill. But then last Friday, Trump said he will reveal a “massive” tax package that will deliver cuts “bigger I believe than any tax cut ever.” His statement on Friday was further affirmed by a Saturday tweet

Trump Tax Cut Announcement


The plan however still faced a long road to enactment and signed into law, as the plan needs to get the approval by Congress and Democrats has expressed doubt about Trump’s plan as fiscally irresponsible. The plan still lacks on details on how to offset the reduced tax revenue, as budget experts believe that the tax cut could cost trillions of dollars in revenue in 10 years, ballooning the government debt. The stock market initial response was favorable and global indices gapped up on the Monday open on April 24. With the much-anticipated tax reform close to reality, investors are emboldened to chase stocks higher and the corporate-friendly tax rate adds upside momentum on the back of upbeat earnings season.

For us at EWF, we know before the news that indices still have more upside due to the bullish Elliott Wave sequence from Feb 2016 low, and we have been telling our members not to sell them and only buy the dips instead. With this latest rally to all-time high, we believe that the stock market rally could be entering the last leg of rally to end the cycle from Feb 2016 low. Let’s take a look at some U.S. stock markets below:

NASDAQ Daily Chart


Even before the news, we know that Nasdaq should extend higher as the Elliott wave sequence from Feb 11, 2016 low is showing a 5 swing bullish sequence, which favors more upside. After the news, Nasdaq gapped up then broke to new all-time high but we could see now that the cycle starting from Feb 11, 2016 low should reach extreme area in 7 swing at 6184 – 6455 area. This area could potentially end the cycle from Feb 11, 2016 and when that cycle is over, we could see a pullback in 3, 7, or 11 swing to correct cycle from Feb 11, 2016 low.

Overlay of NASDAQ, RUSSELL, and S&P 500


An overlay of the three Indices above shows the same cycle starting from Feb 11, 2016 low, which suggests that the biggest tax cut news could create the last leg rally to end cycle from Feb 11, 2016 before a pull back is seen in the Indices.

 

[Elliottwave-Forecast]

NZDUSD Elliott Wave View: More downside

Short term Elliott Wave view in NZDUSD suggests the decline to 0.6844 low ended cycle from 3/21 high in Minor wave W. Pair is currently correcting cycle from 3/21 high in 3, 7, or 11 swing in Minor wave X before the decline resumes. The rally from 4/27 low (0.6844) looks to be unfolding as a double three Elliott Wave structure where Minute wave ((w)) is expected to complete soon as a Flat Elliott wave structure , then pair should pullback in Minute wave ((x)) to correct cycle from 4/27 low before turning higher again. We don’t like buying the proposed bounce and expect Minor wave X rally to find sellers in 3, 7 or 11 swing for more downside as far as pivot at 0.709 high remains intact.

NZDUSD 1 hour Elliott Wave Chart 05/02

 

[Elliottwave-Forecast]

NZD USD Incomplete Elliott Wave Sequence

NZD USD is showing 5 swings down from 2/6/2017 (0.7375) which means it’s an incomplete Elliott wave sequence and calls for another swing lower to complete 7 swings down from 2/6/2017 (0.7375) peak. First 3 swings completed on 3/9/2017 (0.6886) and bounce to 3/21/2017 (0.7091) was the 4th swing. Pair has since made a new low below 0.6886 which means we have started the next cycle lower with a target of 0.6739 – 0.6589 and ideally 0.6607 – 0.6492 area.

NZD USD Incomplete Elliott Wave Sequence



We can see 5 swings down from 2/6/2017 peak on this chart (please note these are 5 swings which is not the same as a 5 wave Impulse). As we explained above, 5 swings means the sequence is incomplete and makes the sequence bearish against 0.7091 high as indicated by the red invalidation line and the red arrow. Proposed 6th bounce should stay below 0.7091 high and pivot for the pair to continue lower in 7th swing. Ideally 6th swing should stay below the descending trend line as well which is currently at 0.7018.

NZD USD 1 Hour Elliott Wave Chart



Preferred Elliott wave count suggests NZDUSD drop from 0.7091 was a FLAT which is proposed to have ended at 0.6844 i.e. wave W and a bounce in wave X (6th swing) is now in progress to correct the decline from 0.7091 high before pair turns lower again. Pair has already done 3 waves up which meets the minimum requirements for wave X bounce but market correlation is favoring the idea of a double three correction in wave X. Thus, we are looking for a pull back in wave ((x)) followed by another 3 waves higher to complete wave X before decline resumes. Ideally area for wave X to end would be 100 – 123.6 Fibonacci extension area of waves ((w))-((x)) and might coincide with 0.6966 – 0.6995 (50 – 61.8 Fibonacci retracement area of wave W). We don’t like buying the pair and expect the bounce to fail below 0.7091 high for another leg lower towards 0.6739 – 0.6589 area at least.

 

[Elliottwave-Forecast]

Gold short term weakness likely

Gold to Silver Ratio Daily Elliott Wave Chart



Daily chart of Gold-to-Silver ratio above suggests that the ratio is correcting cycle from 2/29/2016 peak (83.68) before the decline resumes later, provided that pivot at 83.68 high stays intact. Short term, cycle from 7/4/2016 low (64.37) is showing a 5 swing incomplete sequence, favoring further upside in the short term. Expect the ratio to extend higher towards 76.55 – 78.68 area to end the rally from 7/4/2016 low, then it should at least pullback in 3 waves if not continue the next leg lower.

As the Ratio is inversely correlated with the underlying physical metals, this suggests that a higher ratio implies a lower XAUUSD and XAGUSD. Thus, we could expect short term weakness in both metals to persist until the Ratio reaches the target of 76.55 – 78.68, then when the Ratio turns lower, both metals can get support and start rallying also.

 

[Elliottwave-Forecast]

NZDUSD Elliott Wave View: Correction in progress

Short term Elliott Wave view in NZDUSD suggests the decline to 0.6844 low ended cycle from 3/21 high in Minor wave W. Pair is currently correcting cycle from 3/21 high in 7 or 11 swing in Minor wave X before the decline resumes. The rally from 4/27 low (0.6844) is unfolding as a double three Elliott Wave structure where Minute wave ((w)) ended at 0.6937 as a Flat Elliott wave structure , and Minute wave ((x)) pullback ended at 0.69. Near term, pair is correcting cycle from 0.69 low within Minutte wave (b) and while dips stay above there, expect pair to resume higher towards 0.699 – 0.7014 area before the decline resumes. We expect Minor wave X rally to find sellers at 0.699 – 0.705 area for an extension lower or at least a 3 waves pullback as far as pivot at 0.709 high remains intact.

NZDUSD 1 hour Elliott Wave Chart 05/03/2017

 

[Elliottwave-Forecast]

Hello fellow traders. In this technical blog we’re going to take a quick look at the past Elliott Wave chart of USDCAD. In further text we’re going to explain the structure,count the swings and see how we foretasted the path.

USDCAD Elliott Wave 1 Hour Chart 04.27.2017

As our members know, we were pointing out that USDCAD is having incomplete bullish swings sequence from the 04/13 low . Structure has been calling for more strength in 7th swings once (x) blue pull back completes as Expanded flat. As far as short term pivot at 1.3406 low holds, the pair will be ideally targeting 1.3713 area. . At the chart below we can see that 6th swing is unfolding as expanded flat looking for 1.3526-1.34977 area to complete. Due to incomplete bullish sequences we recommended our members to avoid selling the pair, keep favoring the long side



USDCAD Elliott Wave 1 Hour Chart 05.02.2017

Eventually the pair has reached propose 50 fibs area at 1.35267 and completed (x) blue there as irregular flat structure. We got nice reaction higher. Currently approaching ideal target area at 1.3715-1.3788 and it’s already close to ending the cycle from the 04/13 low . Current price structure met minimum requirements already, and we should be careful chasing the strengths at this stage.



Keep in mind market is very dynamic and the view could have changed in a meant time.

 

[Elliottwave-Forecast]

Nikkei Elliott Wave View: Ending impulsive 5 waves

Short term Elliott Wave view in Nikkei ( NKD_F) suggests that the decline to 4/16 low (18255) ended primary wave ((4)). Up from there, the rally is unfolding as an impulse Elliott wave structure where Minute wave ((i)) ended at 18590, Minute wave ((ii)) ended at 18315, Minute wave ((iii)) ended at 19355, and Minute wave ((iv)) ended at 19170 low. Near term index has reached the minimum extension area in Minute wave ((v)) already, however another push higher towards 19579 area can be seen before index ends cycle from 4/17 lows in Minor wave A. Afterwards index is expected to see a pullback in 3, 7 or 11 swings within Minor wave B before further upside is seen. We don’t like selling the proposed pullback and expect buyers to appear again once Minor wave X pullback is complete in 3, 7, or 11 swing provided that pivot at 4/16 low (18255) remains intact.

Nikkei 1 Hour Elliott Wave Chart

 

[Elliottwave-Forecast]

NZDUSD Elliott Wave View: Correction Ended

Revised Elliott Wave view in NZDUSD suggests the decline from 3/21 high (0.709) is unfolding as a triple three Elliott Wave structure where Minute wave ((w)) ended at 0.6905, Minute wave ((x)) ended at 0.7053, Minute wave ((y)) ended at 0.6844 and Minute second wave ((x)) is proposed complete at 0.6968. Minute wave ((z)) is in progress and unfolding as a double three Elliott Wave structure where Minutte wave (w) is expected to complete at 0.6815 – 0.6846 area, then it should bounce in Minutte wave (x) to correct cycle from 5/2 high before pair resumes lower again. We don’t like buying the pair and expect bounces in Minutte wave (x) to find sellers in 3, 7, or 11 swing provided that pivot at 0.6968 high remains intact.

NZDUSD 1 Hour Elliott Wave Chart 05/04/2017

 

[Elliottwave-Forecast]

NZDUSD Elliott Wave View: Downside Resumes

Revised Elliott Wave view in NZDUSD suggests the decline from 3/21 high (0.709) is unfolding as a triple three Elliott Wave structure where Minute wave ((w)) ended at 0.6905, Minute wave ((x)) ended at 0.7053, Minute wave ((y)) ended at 0.6844 and Minute second wave ((x)) is proposed complete at 0.6968. Minute wave ((z)) is in progress and unfolding as a double three Elliott Wave structure where Minutte wave (w) ended at 0.6835 , and Minutte wave (x) is in progress to correct cycle from 5/2 high before pair resumes lower again. We don’t like buying the pair and expect bounces in Minutte wave (x) to find sellers in 3, 7, or 11 swing for more downside provided that pivot at 0.6968 high remains intact.

NZDUSD 1 Hour Elliott Wave Chart 05/05/2017

 

[Elliottwave-Forecast]

NZDUSD Elliott Wave View: Extended Correction

Revised Elliott Wave view in NZDUSD suggests the decline from 3/21 high (0.709) is unfolding as a leading diagonal Elliott Wave structure where Minute wave ((i)) ended at 0.6905, Minute wave ((ii)) ended at 0.7053, Minute wave ((iii)) ended at 0.6844, Minute wave ((iv)) ended at 0.6968. and Minute wave ((v)) of A ended at 0.6835. Pair is bouncing within Minor wave B to correct cycle from 3/21 high before the decline resumes. We don’t like buying the proposed bounce and expect sellers to appear once wave X bounce is complete in 3, 7, or 11 swing provided that pivot at 3/21 high (0.709) remains intact.

NZDUSD 1 Hour Elliott Wave Chart

 

[Elliottwave-Forecast]

SPX Elliott Wave View: Ending diagonal

Short Term Elliott Wave view in SPX suggests the rally from 3/27 low (2322.2) is unfolding as a leading diagonal Elliott Wave structure where Minute wave ((i)) ended at 2378.36, Minute wave ((ii)) ended at 2328.95, Minute wave ((iii)) ended at 2398.16, and Minute wave ((iv)) ended at 2379.75. The Index has broken above previous Minute wave ((iii)) and thus it has met the minimum requirement in the number of swing to end cycle from 3/27 low as a diagonal. However, while near term pullbacks stay bove 2379, further upside still can’t be ruled out before cycle from 3/27 low ends. Near term focus is on 2403 – 2406 area to complete Minutte wave (a), then Index should pullback in Minutte wave (b) in 3, 7, or 11 swing to correct cycle from 5/3 low before Index resumes higher. We don’t like selling the Index.

SPX 1 Hour Elliott Wave Chart 05/09/2017

 

[Elliottwave-Forecast]

How Bullish is the SPX, Can it see 3189 area?

This is Elliott Wave analysis video on SPX and DJUSRE (Dow Jones Real Estate Index) in which we are going to take a look if SPX can reach the 3189 area to the upside before ending the all time cycle. In order to answer it, we will look for a clue in the market by analyzing DJUSRE. The DJUSRE (Dow Jones Real Estate Index) is following similar cycles with the world indices, but correlating DJUSRE with SPX and other world indices, DJUSRE is lagging and hasn’t broken the 2007 peak yet. If the Real Estate Index manages to break above 2007 peak, it will show incomplete bullish sequence and can eventually see 454- 541 area to the upside. That area in DJUSRE then can allow SPX to see the 3189 area next before ending the cycle from 2009 lows and index should correct the all time cycle.

SPX Upside Target Area Video

DJUSRE Long Term Elliott Wave View



SPX Long Term Elliott Wave Chart

 

[Elliottwave-Forecast]

GBP USD made new high after Double Three correction

Hello fellow traders. In this technical blog we’re going to take a quick look at the past Elliott Wave chart of GBP USD. In further text we’re going to take a look at the structures,count the swings and explain the reasons why we called for the extension to the upside.

GBP USD Elliott Wave 4 Hour Chart 4.29.2017

As we can see on the chart below, rally from the 03/14 low is showing incomplete structure. GBP USD is currently showing 9 swings from the mentioned low, suggesting we should get another leg up, once short term ((b)) pull back complete. With proposed scenario we will get clear 11 swings structure. Although the pair has already reached the extreme area from the 03/14 low at 1.284-1.3801, we knew that extension is possible not only because of incomplete structure in GBP USD, but also because of incomplete bearish swing structure we have had in USDX from the 12/15 peak, calling for more weakness. As GBP USD is inversely correlated with Dollar index, we expect GBP USD to ideally stay supported until USDX reaches extremes in the mentioned cycle.



Now let’s take a look at the short term structure that has been unfolding during the next few days.

GBP USD Elliott Wave 1 Hour Chart 5.4.2017



We got nice pull back in wave ((b)) as expected. Short term structure suggests ((b)) pull back is still in progress as Double three (w)(x)(y) structure.It should ideally make another push down and reach 1.2842-1.2817 area, before intraday buyers appear for another leg up.

Shortly after, GBPUSD reached 1.2842-1.2817 area as expected. It found buyers there as expected, make nice rally and eventually it broke above 04/28 peak , which is labeled on the chat as wave ((a)) .

 

[Elliottwave-Forecast]

SPX Elliott Wave View: Mature Cycle

Short Term Elliott Wave view in SPX suggests the rally from 3/27 low (2322.2) is unfolding as a leading diagonal Elliott Wave structure where Minute wave ((i)) ended at 2378.36, Minute wave ((ii)) ended at 2328.95, Minute wave ((iii)) ended at 2398.16, and Minute wave ((iv)) ended at 2379.75. The Index has broken above previous Minute wave ((iii)) and thus it has met the minimum requirement in the number of swing to end cycle from 3/27 low as a leading diagonal. However, while near term pullbacks stay above 2380, further upside in one more leg still can’t be ruled out before cycle from 3/27 low ends. Near term, Minute wave (v) is proposed to be unfolding as a zigzag Elliott Wave structure where Minutte wave (a) ended at 2403.8 and Minutte wave (b) ended at 2392.4. While pullbacks stay above 2392.4, and more importantly above 2380, Index has scope to extend one more leg higher. We don’t like selling the Index.

SPX 1 Hour Elliott Wave Chart 05/10/2017

 

[Elliottwave-Forecast]

Paypal Elliott Wave Technical Structure

Paypal (NASDAQ: PYPL) is a worldwide online payments company founded 18 years ago. It had its first IPO in 2002 , but in this article we will only be looking at the technical picture for PYPL since its second IPO 2 years ago which valued the company at $46.6 billion. So with the only data available since 2015, we need to present the current different structures that can be labeled in the daily chart and then make a path accordingly.

Paypal Diagonal Structure
Looking for a clean 5 waves move is hard these days but switching to the leading diagonal is an easy choice as corrective 3 waves structure is filling the charts. So accordingly , PYPL can be ending the cycle from 2016 low around equal legs area 48.67 – 51.17 as wave (3) without divergence before a 3 waves pullback can take place. Paypal wave (4) should remain within the bullish channel and the pivot at 38 low needs to remain in place for the stock to be able to resume the rally for new highs after ending the correction.



Paypal Double Three Structure
Using 2016 correction as a connector , we can label PYPL as a 7 swings structure from August 2015 low which already reached the extreme area and currently entering equal legs 48.72 area from June 2016 low. The bullish cycle will remain alive as long as pivot at 39.02 low is holding which means the stock can ideally do a short term 3 waves pullback in wave ((iv)) of C before a final thrust higher toward 51.22 – 55.27 area. There PYPL should be ending the whole cycle from 2015 low and a larger pullback can take place.



Paypal Triple Three Structure
PYPL can also be counted as 9 swings structure if we use double connectors supported by oscillations, so the stock is then entering the target area for wave (Z) = wave (Y) = wave (W) around 48.67 – 52.75 area and will be then ending the cycle from 2015 low . So it will be the same result as mentioned in the case of the double three structure which is a big correction in wave ((X)).



Recap:
Market condition have changed during the recent decades and every analyst / trader needs to adapt to the new conditions to have a clear path. One of the observation that we came across in EWF is that markets can be trending higher or lower in series of 3 wave moves which can be commonly seen in most forex pairs. Paypal is currently moving in 3 wave sequences rather than impulsive waves and the 3 scenarios presented above is only helping us to identify the areas where the cycle can be ending to prepare for the next move. Consequently , the current $50-$55 area can produce a pullback for the stock and depending on the speed and timing of the move we’ll know which cycle has ended and where will be the next buying opportunity as all scenarios are still pointing to more upside after the corrections.

 

[Elliottwave-Forecast]

SPX Elliott Wave View: Near Pullback

Short Term Elliott Wave view in SPX suggests the rally from 3/27 low (2322.2) is unfolding as a leading diagonal Elliott Wave structure where Minute wave ((i)) ended at 2378.36, Minute wave ((ii)) ended at 2328.95, Minute wave ((iii)) ended at 2398.16, and Minute wave ((iv)) ended at 2379.75. The Index has broken above previous Minute wave ((iii)) and thus it has met the minimum requirement in the number of swing to end cycle from 3/27 low as a leading diagonal. Although the cycle from 3/27 low is already mature, another leg higher can’t be ruled out as far as pullbacks stay above 2380. Near term, Minute wave (v) is proposed to be unfolding as a zigzag Elliott Wave structure where Minutte wave (a) ended at 2403.8 and Minutte wave (b) ended at 2392.4. While pullbacks stay above 2392.4, and more importantly above 2380, Index has scope to extend one more leg higher. We don’t like selling the Index and chasing the last leg higher here is also a bit risky. Expect cycle from 3/27 low to end soon with or without one more leg higher and Index to do larger degree pullback in 3, 7, or 11 swing to correct cycle from 3/27 low before the rally resumes.

SPX 1 Hour Elliott Wave Chart 05/11/2017

 

[Elliottwave-Forecast]

Learning Flat Elliott Wave Structure

There are three different types of Flat Elliott Wave Structure:

A. Regular Flat Elliott Wave Structure


Rules:

1. Corrective 3 waves labelled as ABC
2. Subdivision of wave A and B is in 3 waves
3. Subdivision of wave C is in 5 waves
4. Wave B terminates near the start of wave A
5. Wave C generally terminates slightly beyond the end of wave A
6. Wave C must have momentum divergence

Fibonacci Relationship:

1. Wave B = 50%, 61.8%, 76.4%, or 85.4% of wave A
2. Wave C = 61.8% – 123.6% of wave AB

B. Expanded Flat Elliott Wave Structure


Rules:

1. Corrective 3 waves labelled as ABC
2. Subdivision of wave A and B is in 3 waves
3. Subdivision of wave C is in 5 waves
4. Wave B terminates beyond the starting level of wave A
5. Wave C ends substantially beyond the ending level of wave A
6. Wave C must have momentum divergence

Fibonacci Relationship:

1. Wave B = 123.6% of wave A
2. Wave C = 123.6% – 161.8% of wave AB

C. Running Flat Elliott Wave Structure


Rules:

1. Corrective 3 waves labelled as ABC
2. Subdivision of wave A and B is in 3 waves
3. Subdivision of wave C is in 5 waves
4. Wave B terminates substantially beyond the starting level of wave A
5. Wave C travels full distance, falling short of the level where wave A ended
6. Wave C must have momentum divergence

Fibonacci Relationship:

1. Wave B = 123.6% of wave A
2. Wave C = 61.8% – 100% of wave AB

Learning Flat Elliott Wave Structure recording