(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.
