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The formations of Elliott Waves (EWs) in a trend are five waves (1 2 3 4 5), followed by a three wave correction (a b c).
So in a normal trend the wave counts go 5 3 5 3 5 etc until the end of the trend. This is for upwards as well as downwards trends.
When a trend ends and a new one starts, there are either two five-waves together, or two three-waves together - 1 2 3 4 5 then 1 2 3 4 5 or a b c then a b c.
The tricky thing with EWs is that there are virtually always waves within waves, so it's not always easy to see (except with hindsight, as with every other trading strategy!).
I would like to suggest that in Roger's chart, wave 1 down actually starts at 13:00, then wave 2 up, wave 3 down (he has this as wave 1), wave 4 up (he has this as wave 2), and then finally wave 5 down (he has this as waves 3 4 and 5). I concur with his a b c correction waves.
THE book on EWs is by Frost and Prechter, called Elliott Wave Principle. I have the 20th anniversary edition and it runs to 240 pages of anything you could possibly want to know about EWs (y-a-w-n). As you would expect, there are exceptions for every rule, including with EW.
So in a normal trend the wave counts go 5 3 5 3 5 etc until the end of the trend. This is for upwards as well as downwards trends.
When a trend ends and a new one starts, there are either two five-waves together, or two three-waves together - 1 2 3 4 5 then 1 2 3 4 5 or a b c then a b c.
The tricky thing with EWs is that there are virtually always waves within waves, so it's not always easy to see (except with hindsight, as with every other trading strategy!).
I would like to suggest that in Roger's chart, wave 1 down actually starts at 13:00, then wave 2 up, wave 3 down (he has this as wave 1), wave 4 up (he has this as wave 2), and then finally wave 5 down (he has this as waves 3 4 and 5). I concur with his a b c correction waves.
THE book on EWs is by Frost and Prechter, called Elliott Wave Principle. I have the 20th anniversary edition and it runs to 240 pages of anything you could possibly want to know about EWs (y-a-w-n). As you would expect, there are exceptions for every rule, including with EW.
