Latest posts

    Bitcoin – The bottom is not in! 15k or 10k (careful)

    March 23, 2023

    Bitcoin – 10% crash, pullback is very likely!

    March 21, 2023

    Ethereum – Trendline from 2015 is breaking down! (unbeliveable)

    March 20, 2023
    Telegram RSS
    • My TradingView
    • Best way to trade futures
    • Best way to trade spot
    • The holy grail of trading
    • The game changer
    Telegram RSS
    Tolberti
    • Home
    • Education
      1. Motivation & Strategy
      2. Technical Basics
      3. Candlesticks
      4. Chart patterns
      5. Indicators
      6. FIbonacci
      7. Elliott wave
      8. Harmonic patterns
      9. View All

      What is drawdown in Trading

      December 2, 2022

      Trading Psychology and its Importance – Tips For a Winning Mindset

      November 2, 2022

      As a trader you need to stay disciplined!

      November 2, 2022

      How to Create a Successful Trading Plan – Step-By-Step Guide

      November 2, 2022

      Price action trading strategies that you need to know

      November 2, 2022

      Support and Resistance – A basic concept of technical analysis

      November 2, 2022

      Technical analysis explained – What is it and how does it work?

      November 2, 2022

      The most common mistakes technical analysts make

      November 2, 2022

      Candlestick Patterns – Complete Guide to Bearish and Bullish Candlesticks

      November 2, 2022

      Rising three methods

      August 11, 2022

      Falling three methods

      August 11, 2022

      Spinning top

      August 11, 2022

      Rising & Falling Wedge

      January 20, 2023

      Bullish Pennant

      January 20, 2023

      Bull Flag

      January 20, 2023

      Head and Shoulders

      January 20, 2023

      OBV – On-Balance Volume

      December 2, 2022

      Market Profile – A Complete Guide

      November 2, 2022

      Ichimoku cloud

      August 18, 2022

      Moving average (MA)

      August 18, 2022

      Fibonacci and Market Analysis

      August 13, 2022

      4 mistakes that Traders should avoid while Trading with Fibonacci

      August 13, 2022

      Why Fibonacci Series is important for Technical Analysis

      August 13, 2022

      A complete overview on trend and theory of retracement

      August 13, 2022

      Elliott Wave Cheat Sheet: All You Need

      August 14, 2022

      Elliott Wave Theory: Complex guide

      August 14, 2022

      Elliott Wave: All About How To Count

      August 14, 2022

      Leading And Ending Diagonal: How To Trade Them

      August 14, 2022

      Alternate bat pattern

      October 1, 2022

      The List of All Known Harmonic Patterns & Ratios

      October 1, 2022

      Cypher pattern

      September 1, 2022

      ABCD pattern

      August 13, 2022

      Rising & Falling Wedge

      January 20, 2023

      Bullish Pennant

      January 20, 2023

      Bull Flag

      January 20, 2023

      Head and Shoulders

      January 20, 2023
    • Technical analysis

      Bitcoin – The bottom is not in! 15k or 10k (careful)

      March 23, 2023

      Bitcoin – 10% crash, pullback is very likely!

      March 21, 2023

      Ethereum – Trendline from 2015 is breaking down! (unbeliveable)

      March 20, 2023

      Bitcoin – 100% probability to go down to 20k!

      March 17, 2023

      Bitcoin – Last crash before a pump! (must see)

      March 12, 2023
    • Info
      • Crypto news
      • Crypto converter
      • Crypto exchanges
      • My TradingView
      • Best way to trade futures
      • Best way to trade spot
    • Contact
    • My books
    • Join premium channel
    Tolberti
    Home»Education»Elliott wave»Elliott Wave: All About How To Count
    Elliott wave

    Elliott Wave: All About How To Count

    By TolbertiAugust 14, 2022No Comments
    Facebook Twitter Telegram WhatsApp Reddit Pinterest Email
    Share
    Facebook Twitter Telegram WhatsApp Reddit Pinterest Email

    Where To Start Your Elliott Wave Count From?

    This question is often asked by beginners who are studying Elliott Wave Theory.

    Beginners think that by counting waves they can deduce the next price movement.

    For instance, if the trader or the analyst counts 5 motive waves, then he will expect that the price will fall in the next movement as a corrective wave.

    If that primitive method way may suit some beginner traders, but this method represents a big mistake that you must avoid.

    Counting waves always come from the largest available data of the wave degree which shows important details that must be followed to know more information for the long-term and medium-term waves.

    We will show an important example of the availability and scarcity of historical data.

    How To Predict The Next Price Movement Using Elliott Wave?

    In the above figure, we can easily determine the main pattern of Elliott wave Theory, and accordingly, we expect that if the 5 impulsive waves end, followed by 3 corrective waves and the correction ends on 50% or 61.8% Fibonacci which is the standard ratio for wave 2 correction.

    Accordingly, we will expect a strong rise in the third bullish impulsive wave as shown in the figure below.

    If we have more data indicating a longer historical period, as follows, will the prediction be different?

    According to the difference in data, see the figure below.

    Sure after having more historical data, we will see a difference in our expectations.

    So, the correction will end in wave 3 and a return to the bearish trend again. Hence, the expected scenario will be as in the figure.


    If We Have More Historical Data For Longer Periods, Will This Change Our Expectation For The Next Movement?

    The answer is definitely yes, when we get more historical data, it becomes clear the correct pattern for the next movement.

    The more data, the greater the accuracy in the analysis and the ability to anticipate the correct movement.

    To have a more precise analysis, the wave analyst have to search for the largest possible amount of historical data, and he had to start analyzing these data according to the wave degrees.

    For example, we will assume that the maximum possible data on the monthly chart is part of the grand super cycle degree and we will go down from it to the lowest degrees.

    So we can analyze the monthly chart as grand super cycle followed by the weekly chart which is the super degree, then to the daily chart which is the cycle degree passing through primary degree on the 12h, then to the intermediate degree on the 8h cart, followed by the minor degree on the 4h chart and then the minute degree on the 1h chart then the minuette degree on the 5min chart and finally the sub-minuette degree on the 1min chart.

    Identify Patterns With The Naked Eye In Elliott Wave

    The wave analyst or the trader must understand well the patterns (impulsive and corrective waves) and train the eye to extract the pattern, which is a process that weighs with experience.

    Identifying patterns by the naked eye requires experience and understanding of patterns, measurements and the conditions for each wave.

    Back To Our Main Question, Where Do We Start Counting?

    The answer is clear, we start counting from the monthly time-frame through the different frames until you reach the frame that you want to trade on.

    You can stop at the weekly if you are an investor, or work on the daily frame or 4 hour frame and you can reach the minute frame.

    Each complete wave count on a time frame is a sub-degree of a higher degree, and when the new wave is completed on a higher degree, it becomes a sub-degree of a higher degree, and so on.

    So, wave analysts should deal with historical data, and start counting from the biggest time-frame to the frame that they want to trade on.

    We will explain the counting of EURUSD chart from the monthly time-frame to the 4h time-frame.

    Try to identify the correct pattern. It will be easy if you understand the theory and memorize the rules and patterns.

    As seen in the figure, we identified a regular flat pattern from the monthly EURUSD chart. Let us see if it’s possible to identify another pattern on this chart.

    If you realized that there is another pattern on the chart which is a complex correction.

    As we see, we identified 2 patterns on the chart:

    1. Regular flat and one of its condition that it must not break the bottom of wave C, so that bottom of wave C or the origin of wave C will be a stop loss. Eurodollar is expected to rise.
    2. Complex correction, and one of its condition is to break the bottom of Y, so that the top of wave XX will be stop a stop loss. Eurodollar is expected to fall.

    In this case, we have to check the weekly time-frame and count the waves to choose between the 2 scenarios.

    One of the conditions is not to break the bottom of wave B or 2, so that the bottom of wave B or 2 will be a stop loss. Eurodollar is expected to rise.

    Another condition is to break the bottom of Y, so that the top of wave XX will become a stop loss. Eurodollar is expected to fall.

    After counting the daily chart, we found that the correct pattern is the regular flat due to the last fall for EURUSD.

    We found that the downward movement is a correction (W, X, Y) which is wave A of flat, followed by wave B, and we will wait till the end of the correction which is wave C of flat and the price will move upward again.

    Why We Choose This Scenario?

    Due to the corrective fall, if Eurodollar fell in 5 waves, then we will say that the direction will change.

    But, since we weren’t able to identify a pattern that supports the fall of Eurodollar.

    Finally, we have the 4h time-frame. In this chart, we have 5 bearish waves, the points which are highlighted in red have to be broken and exceeded, and then we can say that Eurodollar started a bullish movement.

    In other words, if these points haven’t broken, Eurodollar will not move upward.

    This is the feature of analysis based on Elliott wave Theory because it gives precise entering, exiting points and the areas that have to be broken to change the direction otherwise the direction will not change.

    Share. Facebook Twitter Telegram WhatsApp Reddit Pinterest Email
    Previous ArticleLeading And Ending Diagonal: How To Trade Them
    Next Article Elliott Wave Theory: Complex guide
    Tolberti
    • Website

    Professional trader and analyst. My specialization is in Elliott Wave Theory, Fibonacci tools, chart patterns, candlesticks, and price action. To analyze market structure, I use market profile and volume profile in my trading system. To analyze trends, I use trendlines, VWAP, and simple moving averages.

    Leave A Reply Cancel Reply

    Join premium channel
    Join Premium
    Random education
    FIbonacci

    A complete overview on trend and theory of retracement

    TolbertiBy TolbertiAugust 13, 20220

    The direction of the price movement at the given point of time is called a…

    Elliott wave

    Double Three and Triple Three patterns

    TolbertiBy TolbertiAugust 11, 20220

    Double and Triple Threes are the trickiest wave patterns, which consist of zigzags, flats, triangles, double and…

    Harmonic patterns

    Bat pattern

    TolbertiBy TolbertiAugust 13, 20222

    Harmonic Patterns are one of the powerful advanced price action techniques that are used to…

    Candlesticks

    Three white soldiers

    TolbertiBy TolbertiAugust 11, 20220

    The three white soldiers pattern occurs over three days. It consists of consecutive long green…

    Indicators

    Parabolic SAR

    TolbertiBy TolbertiAugust 18, 20220

    The Parabolic Sar (stop and reverse indicator) by J. Welles Wilder, is a trading indicator…

    Random analysis
    Technical analysis

    Ethereum, ETH 2.0 in a few days! – Explosive bull market

    TolbertiBy TolbertiSeptember 2, 20220

    Ethereum is now the leading cryptocurrency because everyone is anticipating the greatest event in the…

    Technical analysis

    Terra Classic LUNC – More downside is coming! | Elliott wave

    TolbertiBy TolbertiSeptember 16, 20220

    The bull party for LUNC is over, and now we need to regain strength again…

    Technical analysis

    Ethereum – Ready for explosion! (Must see)

    TolbertiBy TolbertiFebruary 4, 20230

    ETH is a ticking bomb at this moment, because my analysis suggests an explosive move…

    Technical analysis

    Bitcoin – Best plan for the next week!

    TolbertiBy TolbertiMarch 6, 20232

    First, Bitcoin is going to drop to 21833 or even a little bit lower at the start…

    Technical analysis

    APT Aptos – Be careful, do not buy this coin!

    TolbertiBy TolbertiOctober 28, 20220

    I see multiple warning signs on this chart. It looks like a lot of traders…

    Free technical analysis and education from a professional trader. Go to the "education" section and start learning immediately.

    💡Join my premium channel on Telegram (my trades, signals) - get access.

    ✅ 1 month: 49 USD
    ✅ 4 months: 99 USD
    ✅ 12 months: 149 USD
    ✅ Life Time: 249 USD

    Latest posts

    Bitcoin – The bottom is not in! 15k or 10k (careful)

    March 23, 2023

    Bitcoin – 10% crash, pullback is very likely!

    March 21, 2023

    Ethereum – Trendline from 2015 is breaking down! (unbeliveable)

    March 20, 2023
    Get Informed

    Subscribe to Updates

    Get the latest news about crypto, technical analysis and trading.

    Telegram RSS
    • Home
    • Education
    • Technical analysis
    • Info
    • Contact
    • Terms of use
    • My book
    • Join premium channel
    © 2023 Tolberti.com. All rights reserved.

    Type above and press Enter to search. Press Esc to cancel.

    This website uses cookies to give you the most relevant experience.
    Cookie SettingsAccept
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT