🌊 Mastering the Anatomy: The Rules of Elliott Wave Success! 📊
Understanding that the market moves in waves is step one. Step two is knowing the unbreakable rules that separate a master trader from a gambler. Elliott Wave Theory isn't just a suggestion—it’s a structural law of market geometry!
📐 The 3 Golden Rules of Impulse Waves:
To identify a true 5-wave trend, these rules must hold:
Rule #1: Wave 2 can never retrace more than 100% of Wave 1. (The trend must hold!)
Rule #2: Wave 3 is usually the longest and can never be the shortest of the three action waves. (This is where the real profit is!)
Rule #3: Wave 4 can never enter the price territory of Wave 1. (Keep the momentum clean!)
💡 Why Traders Love It:
By mastering these rules, you don't just "guess" where price is going—you calculate invalidated points. If a rule is broken, your count is wrong, and you exit the trade with minimal loss. It’s the ultimate risk-management tool!
Whether you are looking at a 15-minute chart or a Weekly timeframe, these fractals repeat infinitely. Once you see them, you can’t unsee them.
Which wave do you find hardest to trade: Wave 3 or Wave 5? Let’s talk strategy below! 👇