Ye kyun matter karta hai: Agar tum identify kar sako ki wave count mein kahan ho, tum jaante ho ki trend ke saath chalna hai (impulse waves ke dauran) ya correction complete hone ka wait karna hai (ABC waves ke dauran).
Wave 3: Crowd join karta hai, FOMO kick karta hai → sabse strong, sabse lambi rally
Wave 4: Healthy consolidation, weak hands exit karte hain → pullback (lekin Wave 1 ko touch nahi karta, kyunki conviction bani rehti hai)
Wave 5: Final euphoria, late buyers pile in karte hain → final push (often divergence ke saath—price new high banata hai, lekin momentum kamzor hota hai)
Count kaise karein: Ek significant low se shuru karo. Pattern dhundho: up, down (lekin start ke neeche nahi), BIG up, down (lekin Wave 1 mein nahi), up.
3 waves kyun? Corrections impulses se kam organized hoti hain:
Wave A: Initial shock, "profit-taking" ya "bad news" → sharp drop. Bahut log sochte hain ye sirf ek dip hai.
Wave B: Relief rally, false hope → "buy the dip" crowd step in karta hai. Often Wave A ka 50-78.6% reach karta hai, traders ko lagta hai trend resume ho raha hai.
Wave C: Reality set in hoti hai → final capitulation, often sabse lamba/teez corrective wave. Weak hands clear hoti hain.
Count kaise karein: 5-wave impulse end hone ke baad, 3-wave pullback dhundho. Wave B key trap hai—lagta hai trend resume ho raha hai, lekin ye temporary hai.
Best: Wave 2 ke end par (trend confirm, low risk) ya Wave 4 ke end par (Wave 5 ke liye reload)
Aggressive: Wave C ke end par (correction complete, new impulse starting)
Kahan exit karein:
Wave 5 ke end par (impulse exhaustion) ya Wave B ke dauran (sucker rally—strength mein sell karo)
Kahan avoid karein:
Late Wave 3 (already extended), Wave 5 (top near), Wave A (direction unclear)
Stop-loss placement:
Wave 1 start ke neeche (agar Wave 3 mein ho)
Wave 4 low ke neeche (agar Wave 5 mein ho)
Wave C end ke neeche (agar new impulse mein enter kar rahe ho)
Recall Feynman Explanation (Ek 12-Saal Ke Bacche Ko Samjhao)
Socho ek crowd of kids ek hill par ice cream lene ke liye daud rahi hai jo upar hai. Wo seedhe upar nahi daudte—ye log aise chalte hain:
Upar JAANA (5 steps):
Pehle, kuch brave kids upar daudte hain (Wave 1).
Kuch thak jaate hain aur thoda neeche walk karte hain, lekin poore neeche nahi jaate (Wave 2).
Sabhi leaders ko dekhte hain aur excited ho jaate hain—BIG rush hill par! (Wave 3, sabse strong)
Kuch kids rest karne ke liye rukते hain, lekin wo peeche wahan nahi jaate jahan pehla group shuru hua tha (Wave 4).
Final push—sab ice cream truck tak pahunch jaate hain upar! (Wave 5)
Neeche AANA (3 steps):
Ice cream lene ke baad, ye wapas jaate hain:
A. Kuch kids fast neeche daudte hain (Wave A).
B. Ruko! Kuch ko lagta hai wo kuch bhool gaye aur thoda wapas UP daudte hain (Wave B, the trap).
C. Nahi, wahan kuch nahi tha—sab poore neeche chale jaate hain (Wave C).
Notice karo: Upar JAANE mein 5 steps lagte hain (2 breaks ke saath), lekin neeche AANE mein sirf 3 steps lagte hain. Markets bhi yahi karti hain!
Fibonacci Retracements: Wave 2 aur 4 often 38%, 50%, ya 62% retrace karte hain (Fibonacci levels)
Wave 3 Extension Rules: Wave 3 typically 1.618× Wave 1 kyun hoti hai
Corrective Wave Types: Zigzag, Flat, Triangle—sab 3-wave structures hain ya combinations
Impulse Wave Rules: Valid impulse waves ke liye detailed rules
Market Psychology and Volume: Waves crowd behavior ko kyun reflect karti hain
RSI Divergence: Often Wave 5 tops aur Wave C bottoms par appear hoti hai
#flashcards/stock-market
How many waves are in an Elliott Wave impulse phase? :: 5 waves (labeled 1, 2, 3, 4, 5). Waves 1, 3, 5 motive hain (trend ke saath); waves 2, 4 corrective hain (trend ke against).
How many waves are in an Elliott Wave corrective phase?
3 waves (labeled A, B, C). Wave A initial correction hai, Wave B false hope rally hai, Wave C final capitulation hai.
What is the rule about Wave 2 and Wave 1?
Wave 2 kabhi bhi Wave 1 ka 100% se zyada retrace nahi karta. Ye Wave 1 ke start ke neeche nahi ja sakta (uptrend mein).
What is the rule about Wave 3 length?
Wave 3 kabhi bhi waves 1, 3, aur 5 mein sabse shortest wave NAHI hoti. Ye usually sabse lambi aur strong hoti hai.
What is the rule about Wave 4 and Wave 1?
Wave 4 kabhi bhi Wave 1 ke price territory mein enter nahi karta. Uptrend mein, Wave 4 Wave 1 ki high ke neeche nahi ja sakta (koi overlap nahi).
In a correction, which wave is the "sucker rally"?
Wave B. Ye Wave A ka 50-78.6% retrace karta hai, traders ko lagta hai trend resume ho raha hai, lekin iske baad Wave C down aata hai.
What does "fractal" mean in Elliott Wave?
Har wave chhoti waves mein subdivide hoti hai jo same 5-3 pattern follow karti hain. Impulse waves 5 waves mein subdivide hoti hain; corrective waves 3 waves mein.
Where is the best low-risk entry in an impulse?
Wave 2 ke end par (trend confirm, early entry) ya Wave 4 ke end par (Wave 5 ke liye reload with tight stop below Wave 4 low).
What is a common mistake when counting waves?
Structure ki jagah swings count karna. Ek 3-wave move jo dikhne mein 5 swings lagti hai, phir bhi correction hai agar waves sahi se subdivide nahi hoti (impulse waves ko 5 mein subdivide hona chahiye).
What typically happens to volume in Wave 3 vs Wave 5?
Wave 3 mein sabse zyada volume hota hai (strong participation). Wave 5 mein often volume decline karta hai (divergence), exhaustion signal karta hai.
What Fibonacci levels do Wave 2 and Wave 4 commonly retrace?
Wave 2 often Wave 1 ka 50-62% retrace karta hai. Wave 4 often Wave 3 ka 38-50% retrace karta hai.
What is the typical length relationship between Wave C and Wave A?
Wave C often Wave A ke length ke barabar hoti hai (1:1 ratio) ya 1.618× Wave A tak extend karti hai (Fibonacci extension).
What are the nine Elliott Wave degrees from largest to smallest?
Grand Supercycle → Supercycle → Cycle → Primary → Intermediate → Minor → Minute → Minuette → Subminuette.
