Motivewave forum
![motivewave forum motivewave forum](https://worldcyclesinstitute.com/wp-content/uploads/2016/07/Elliott-Wave.004-002rev.jpg)
This initial deterioration in the market sets the stage for non-confirmations and subtle signs of weakness during the fifth wave.ĥ) Fifth waves - Fifth waves in stocks are always less dynamic than third waves in terms of breadth. Lagging stocks build their tops and begin declining during this wave, since only the strength of a third wave was able to generate any motion in them in the first place. More often than not they trend sideways, building the base for the final fifth wave move. Besides the personality of B waves, that of third waves produces the most valuable clues to the wave count as it unfolds.Ĥ) Fourth waves - Fourth waves are predictable in both depth (see page 66) and form, because by alternation they should differ from the previous second wave of the same degree. Virtually all stocks participate in third waves. Such points invariably produce breakouts, "continuation" gaps, volume expansions, exceptional breadth, major Dow Theory trend confirmations and runaway price movement, creating large hourly, daily, weekly, monthly or yearly gains in the market, depending on the degree of the wave.
![motivewave forum motivewave forum](https://www.trading-fuer-anfaenger.de/wp-content/uploads/2021/02/MotiveWave-Webseite.jpg)
It follows, of course, that the third wave of a third wave, and so on, will be the most volatile point of strength in any wave sequence. Third waves usually generate the greatest volume and price movement and are most often the extended wave in a series. Increasingly favorable fundamentals enter the picture as confidence returns. They are strong and broad, and the trend at this point is unmistakable. Second waves often end on very low volume and volatility, indicating a drying up of selling pressure.ģ) Third waves - Third waves are wonders to behold. At this point, investors are thoroughly convinced that the bear market is back to stay. This is especially true of call option purchases, as premiums sink drastically in the environment of 79 fear during second waves. From such beginnings, first waves are dynamic and only moderately retraced.Ģ) Second waves - Second waves often retrace so much of wave one that most of the profits gained up to that time are eroded away by the time it ends. The other fifty percent of first waves rise from either large bases formed by the previous correction, as in 1949, from downside failures, as in 1962, or from extreme compression, as in both 19. Investors have finally gotten "one more rally to sell on," and they take advantage of it. Plenty of short selling is in evidence as the majority has finally become convinced that the overall trend is down. In contrast to the bear market rallies within the previous decline, however, this first wave rise is technically more constructive, often displaying a subtle increase in These observations apply in reverse when the actionary waves are downward and the reactionary waves are upward.ġ) First waves - As a rough estimate, about half of first waves are part of the "basing" process and thus tend to be heavily corrected by wave two. The following discussions relate to an underlying bull market picture, as illustrated in Figures 2-14 and 2-15.
![motivewave forum motivewave forum](https://www.motivewave.com/img/slides/motivewave5_beta_components.png)
Recognizing the character of a single wave can often allow you to interpret correctly the complexities of the larger pattern. It is at these junctures that a knowledge of wave personality can be invaluable. As waves are in the process of unfolding, there are times when several different wave counts are perfectly admissible under all known Elliott rules. Waves’ properties not only forewarn what to expect in the next sequence but at times can help determine the market’s present location in the progression of waves, when for other reasons the count is unclear or open to differing interpretations. The personality of each wave type is manifest whether the wave is of Grand Supercycle degree or Subminuette. Related waves - particularly cousins - have similar market and social characteristics. Every wave has siblings (same-directional waves of the same degree within a larger wave) and cousins (samedegree and same-numbered waves within different larger waves) but no wave has a twin.
![motivewave forum motivewave forum](https://i.ytimg.com/vi/sCPk8-A_sMk/maxresdefault.jpg)
As the Wave Principle indicates, market history repeats but not exactly. The progression of mass emotions from pessimism to optimism and back again tends to follow a similar path each time around, producing similar circumstances at corresponding points in the wave structure. It has the advantage of bringing human behavior more personally into the equation.įree forex signals and The personality of each wave in the Elliott sequence is an integral part of the reflection of the mass psychology it embodies. The idea of wave personality is a substantial expansion of the Wave Principle.