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print Elliott impulse waves Elliot impulse waves are considered long-term waves, defining the main trend
Rule of thumb
In the case of a descending trend, the interpretation of the waves applies accordingly, as there are five impulse waves heading downward and three corrective waves where price increase
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According to the Elliott wave theory, impulse waves are considered to be the main waves in a price movement cycle. Impulse waves are usually long-term waves and are divided into 5 smaller waves.
The characteristics of the 5 smaller waves, in the case of an upward trend, are described below:
- Wave #(i) - It is usually a wave, and the first sign of an upward trend just after a downward trend. Price movements of this wave are usually not so significant in comparison to currently observed movements.
- Wave #(ii): This wave occurs as profits have been realised during the first wave, and shows the first fall back in the current new trend. Some consider that this wave accounts for 60% of the size of the first wave.
- Wave #(iii): This wave usually represents an increase in the optimism of investors, after the fall back of the second wave. It usually is the most confident and the longest wave observed in the 5-wave pattern.
- Wave #(iv): This wave usually adds up to abt. 38% of the size of the 3rd wave. Definitely optimism from investors still prevails, but the 5-wave pattern is near its end.
- Wave #(v): Some technical analysts claim that this wave is better identified using momentum divergences, and usually at the end of the wave volume increases significantly.
How to use it with MetaTrader 5:
- Select a chart for which you want the Elliot impulse waves to be presented.
- Go to: Insert - Objects - Elliott - Elliott motive wave.
- Select the points where the waves are formed in the chart.
- Waves will be presented in the form “(i), (ii), (iii), (iv), (v)”, by MetaTrader 5.
- (Optional): by default, only roman numbers will be displayed in the chart
- If lines are also to be visible, select the properties of the Elliott wave (by right-clicking on the Elliott wave), select parameters, and check the “Lines” box.