Most used technique in analysis of equity, commodity and currency

Hi friends,

The name of this technique is elliot wave theory introduces by the analyst named eliot by his dedication of 75 years in technical analysis which is based on charts.

This technique is based on 5 waves and 3 corrective waves.

i.e. If wave 1 goes upside then wave 2 will go downside and wave 3 again upside and then wave 4 upside and wave 5 again upside and then corrective wave A starts downwords and then wave B starts upward and then lastly wave C goes downwards as mentioned in below picture.

But from wave 1, 3 & 5 wave 3 is the longest wave...

and wave 2 & 4 are called correction waves in which wave 2 never goes below low of wave 1 and wave 4 never goes below low of wave 4.

And the volume remains highest in wave 3 and it also starts lower at the end of wave two...

• generally the wave 2 will go down maximum 68% of wave 1.
• And wave 3 remains nearly 1.618 times of wave 1.
• and in wave 5 the volume is lower than wave 3.
• After completion of wave C the next wave always go upside.

This all are the charecteristics of the elliot wave theory in short and in next topic we will more discuss about it and wil go in detail that is how to decide the length of wave 1,2,3,4,5 and etc..

And hardly this all things are available because this things are very secret. so read the article, understand it and apply you will definately get good returns in equity, commodity as well as currency and enjoy the profit....HARI OM.....