Understanding and Identifying Elliott Wave Patterns (2 one hour classes) part 1

Elliott Wave is a form of technical analysis that was developed by Ralph Nelson Elliott in the 1930s. Elliott observed that financial markets move in recognizable patterns which are created by underlying investor behaviors of fear and enthusiasm.
 
An Elliott Wave has two basic phases: an impulse or motive phase, and a reactionary or corrective phase. The impulse phase always moves in the direction of the trend, whereas the corrective phase moves against it. This would mean in a bullish market; the impulse phase will be moving upward while the corrective phase will be moving downward. In a bearish market the opposite will occur, meaning the impulse phase will move downward and the corrective phase will angle up.
 
In addition to the basic wave structure, there are also a variety of counting rules that go along with Elliott Wave analysis. For example, Wave 3 cannot be the shortest wave and Wave 4 cannot overlap the price territory of Wave 1. There are many such rules which constrain the wave counts possible for a given instrument. In the past, the complexity and variety of the wave counting rules made it difficult for a non-professional to effectively use Elliott Wave analysis in their trading.
 
Using Elliott Wave successfully means keeping it simple. This class was developed to provide you with the basic tools needed for a solid understanding of basic Elliott Wave structures: the 5-wave (impulse) pattern and the 3-wave (corrective) pattern. You can successfully trade using Elliott Wave analysis by following only three basic rules accompanied by a handful of guidelines.
Each Elliott Wave structure defines the trend and the market's next likely move. With a solid understanding of these simple rules and guidelines, you will gain confidence in counting a chart, which can result in a better understanding of the item's price potential.
 
Barry Norman
The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.