Talking Points
-Equal Waves pattern is a simple three wave pattern
-Compare the alternating waves of the pattern to determine if they are equal in length
-Equal Waves patterns can provide clues about the larger Elliott Wave structure
Many traders ask how to begin labeling their chart using Elliott Wave Theory. Try starting with the Equal Waves pattern. The video above describes what the pattern is, how to measure it, and what you can anticipate once the pattern is identified.
The Equal Waves pattern is a three wave structure. Therefore, it can also indicate what the larger degree Elliott Wave pattern in development.
For example, depending on where it shapes, the pattern could be the A or B leg of a flat correction, one of the legs of a triangle, an entire zig zag correction, one leg of a complex correction, or one of legs of a diagonal motive wave.
Suggested Reading: Timing Reversals with Equal Waves (Part 2)
Additional Fibonacci resources:
Join myself, Tyler Yell or Michael Boutros inside the DailyFX Plus Live webinar room where our analysis includes Fibonacci ratios and extensions. DailyFX Plus is available to all FXCM live account holders. If you don’t have a live FXCM account, register for a trial login to DailyFX Plus here.
This article uses Fibonacci ratios to follow a pattern. To learn more about Fibonacci retracement ratios, register and take this free 20 minute on demand course. Register here.
---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
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