Key EW Trading Rules

(Work In Progress)

Please refer to the Elliott Wave International Educational website for the basic tenets. 

I am going to highlight some basic EW rules/guidelines that should help one trade better with EW. Please feel free to add your suggestions as this is a work in progress.

1. Trade waves 3 or C

2. Corrections are never fives. Only motive waves are fives. So an initial five-wave move against the larger trend is never the end of that correction. One should expect a three-wave move and then a final five-wave move in the same direction of that initial five-wave move.

3. Identify pivot points (support/resistance levels) to assist with identifying wave termination points.

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