Elliot Wave Teory Part 2

An attribute theory Elliot is actually a simple understanding about a certain unique pattern that is formed naturally by the market and the patterns formed over the psychological basis of demand and supply price all traders of the world.

Philosophical basis of the mechanism of market forces: that if Supply is more powerful then the price will go down, and vice versa when Demand is more dominant, then the price will go up. push the pattern Patterns shape the Market (at least, this is the Philosophy that is owned by an attribute theory Elliot).

Although the pattern of Elliot has about 21 variant patterns and we don't think it is possible to explain everything here, but Elliott Wave has the basic pattern of the entire Variant.

The basic logic and understanding the above is:

That if the price goes up at no. 1,

then if some Traders assume that the price has been high enough in a period of rising, then they will sell/take profit at no. 2.

When the price has been rectified, so most Traders will be back doing action buy and usually in times when these conditions will most wave length as seeing movement on the No. 1 then it will be more and more traders will do action buy at no. 3.

When the price has climbed very high and seems "impossible" with a price increase, then again most of Trader's action take profit/sell at no. 4.

When prices go back down and look very low, then the majority of the world's Traders return to action buy him at no. 5.

(Motion and the understanding of the above, the same also with the condition the price down)

well, maybe a Friend will ask:

"How about if the price has reached No. 5?"

Basic Elliott wave Pattern well above will usually be in a correction to the pattern as we describe below:

Well as we explain in the "page identifies Elliott wave an attribute theory" was commonly that Elliott wave having an understanding that:

"Basically, the movement of the Market it like a wave, and in the huge Wave created is a small wave that is part of one unified & big waves."

then a movements of the market forming the basis of the Elliot wave an attribute theory, does not cover the possibility that there is a wave-a wave that "again – again" formed a small wave.

as we said earlier, that the Elliott wave has 21 variant/patterns. well but it does not mean we have to memorize everything, because actually all the patterns has the same principles. If taken overview 21 variant then it would be a simple pattern Formation 3.

1. ZIG-ZAG
ZIG ZAG formation looks to move strongly enough with the dominant Trend information and reflected the price (change of Trend) are also quite strong. Wave B usually is the most minor of wave A & C.

Zig zag patterns can occur twice or even three times in a period of correction. As we described earlier, the picture above each wave may have minor/wave-wave is small and can be broken into 5 waves pattern.

2. FLAT
This pattern is actually giving us Information that market conditions are SIDEWAYS/FLAT. and that should be noted:

Generally each Wave equal length sometimes wave B can exceed A wave

3. Triangle
Triangle pattern is quite interesting because it can provide information and price movements after point "e".

Triangle Wave consists of 5. This Triangle could just form a symmetric, ascending, descending, and so on.

Good Luck,