It is a good question and much like one would put a 500-piece jigsaw puzzle together is how you can begin counting with Elliott Wave.
When putting a jigsaw puzzle together, I am looking for recognizable patterns and pieces that seem to fit in or near that pattern. For example, if it is a puzzle picture of an old barn out in the field, I am going to look for those pieces that seem to be connected with the barn.
We will apply that same concept to Elliott Wave. Look for recognizable patterns that help provide clues to identifying good chances at good risk to reward ratio trades.
Here are the three patterns discussed in the video that I will search for to help start the analysis.
- Equal Wave Pattern
- 5-3 Wave Pattern
- Elliott Wave Triangle
(Example from the 5-3 Wave pattern – more can be learned from the Impulse video.)
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This video was the last in a seven part series. Find all seven here.
---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
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