As of 05/13/2022
  Indus: 32,197 +466.36 +1.5%  
  Trans: 14,456 +136.14 +1.0%  
  Utils: 993 +9.90 +1.0%  
  Nasdaq: 11,805 +434.04 +3.8%  
  S&P 500: 4,024 +93.81 +2.4%  
YTD
-11.4%  
-12.3%  
 +1.2%  
-24.5%  
-15.6%  
  Targets    Overview: 04/26/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow16,300 or 13,900 by 05/15/2022
  Down arrow950 or 1,100 by 05/15/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,250 or 3,850 by 06/01/2022
CPI (updated daily): Arrows on 5/13/22
As of 05/13/2022
  Indus: 32,197 +466.36 +1.5%  
  Trans: 14,456 +136.14 +1.0%  
  Utils: 993 +9.90 +1.0%  
  Nasdaq: 11,805 +434.04 +3.8%  
  S&P 500: 4,024 +93.81 +2.4%  
YTD
-11.4%  
-12.3%  
 +1.2%  
-24.5%  
-15.6%  
  Targets    Overview: 04/26/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow16,300 or 13,900 by 05/15/2022
  Down arrow950 or 1,100 by 05/15/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,250 or 3,850 by 06/01/2022
CPI (updated daily): Arrows on 5/13/22

Bulkowski on the Basic Elliott Wave Pattern

 

This page describes the basic motive pattern of the Elliott wave principle, how price moves not in a straight line but in a series of rises and retracements.

 

The 5 wave motive cycle. Shown is the basic five wave motive phase (as opposed to the three wave corrective phase) of the Elliott wave principle. Price moves in a rise-retrace pattern that is similar to an incoming tide. Notice in the chart to the right that the impulse waves, 1, 3, and 5 travel farther than the corrective waves 2 and 4. This behavior leads to a rising price trend in this example.

 

 

 

 

The 8 wave cycle. Reference the figure to the left Three of the waves, 1, 3, and 5, move in the direction of the trend of one higher degree (the blue numbers 1 through 5). This is similar to an ocean's tide. If you are looking at a ripple, one higher degree would be the wave. One higher degree from a wave would be the tide.

Counter trend moves 2 and 4 interrupt the movement of the main thrust.

 

 

Top of page

The 5 wave cycle when the trend is downward. The orientation of the basic 5 wave cycle need not be one of a rising price trend. The chart to the right shows a 5 wave pattern in a falling price trend. As described above, the 5 wave cycle obeys the direction of the trend of one higher degree. In the middle chart of the three on this page, each segment of the A wave is composed of 5 smaller segments, not 3 as in an ABC correction.

 

 

Basic Motive Wave Pattern: Rules

The five wave motive phase has rules that govern its shape. They are listed here.

-- Thomas Bulkowski

Top of page

See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notices: "As an Amazon Associate I earn from qualifying purchases." Paid links).

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy

Copyright © 2005-2022 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.

Home Advertise Contact Donate Links Privacy/Disclaimer

Excess is never too much in moderation.Smiley