Elliot Wave Basic: Part-1
Introduction:
The labeling convention shown above is a hybrid between that shown in the Elliott Wave book and the Elliott tools from SharpCharts. In Elliott-speak, this labeling convention is used to identify the degree or level of the wave, which represents the size of the underlying trend. The upper case Roman numerals represent the large degree waves, the simple numbers represent the medium degree waves and the small-case Roman numerals represent the small degree waves. The trends start with the largest degree (Grand Supercycle) and work their way down to waves of lesser degree. For example, the Cycle wave is one larger degree than the Primary wave. Conversely, the Primary wave is one lesser degree than the Cycle wave. Wave 1 of (1) would indicate that Wave 1 is part of a larger degree Wave (1). Wave 1 is a lesser degree than Wave (1).
In reality, most chartists will only use 1 to 3 wave degrees on their charts. It can get quite complicated trying to apply nine Wave degrees or even just using the labeling convention in the order provided. Chartists using 1 to 3 wave degrees can simply label the highest degree waves with upper case Roman numerals (I,II,III,IV,V,a,b,c), the middle degree waves with numbers (1,2,3,4,5,A,B,C) and the lowest degree waves with lower case Roman numerals (i,ii,iii,iv,v,a.b,c). This provides three distinct groups for labeling various waves.
***For read "Elliot Wave Basic, Next Part", Please click the link below..
Elliot Wave Basic: Part-2
Elliot Wave Basic: Part-3
Elliot Wave Basic: Part-4
Elliot Wave Basic: Part-5
Elliot Wave Basic: Part-6(Conclusion)
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