A practical framework for price structure at every scale.
Elliott Wave produces something most market theories do not: a complete, testable map of the active structure, probable continuation and the exact level where the interpretation fails.
Trend develops in five waves. Correction answers in three.
A testable structure, not a prophecy
In an advancing market, waves 1, 3 and 5 carry the trend. Waves 2 and 4 interrupt it. When the sequence is complete, a corrective A–B–C structure typically retraces part of the journey. The same framework can describe an hour of Bitcoin, several months of the S&P 500 or a multi-year currency cycle.
“A useful count must explain the present and define exactly where it fails.”
Degree is part of the signal
Each wave contains smaller waves and belongs to a larger one. This is the theory’s analytical advantage — and the reason correct labelling is difficult. A count without declared degree and parent context is incomplete. Sir Elliott keeps the active lower-timeframe structure attached to its Primary and Cycle framework.
Three hard rules. Many softer guides.
An impulse count fails if wave 2 moves beyond the start of wave 1, wave 3 is the shortest motive wave, or wave 4 overlaps wave 1 in a standard impulse. Fibonacci ratios, channels and alternation help rank valid counts; they do not rescue an invalid one.
- Rules eliminate. They turn impossible structures off.
- Guidelines rank. They make one valid scenario more plausible than another.
- Price decides. A clean invalidation matters more than an elegant drawing.
The most valuable line is where you are wrong
Forecast targets attract attention, but invalidation creates discipline. When price crosses that boundary, the system does not quietly repaint the past. The old revision is preserved, and the next reading weighs the alternate structure against the same frozen history.