Elliot Wave in Elliot Wave
By looking at the picture above we can conclude that waves 1-3-5 in the impulse wave consist of 5 smaller waves of Elliot Wave (Impulse Wave). Waves 2-4 consist of smaller ABC waves to correct price movements. And this is what is called fractals in the Elliot Wave theory which will always be repeated in a period.
Elliot divided the wave scale into:
- Grand Supercycle (multi century)
- Supercycle (around 40-70 years)
- Cycle (one year to several years)
- Primary (a month to a year)
- Intermediate (weekly to monthly)
- Minor (weekly)
- Minutes (daily)
- Minuette (several hours)
- Sub-Minuette (several minutes)
So the grand supercycle wave is formed by supercycle waves formed by cycle cycles. And this cycle of waves is formed by primary waves formed by intermediate waves. And this intermediate wave is formed by minor waves formed by minute waves. And this minute wave is formed by a minuette wave formed by the smallest wave, the sub-minuette. Confused? no right.
How about the same as the picture in theory? even though it’s only slightly different. Okay, then we will discuss about the 3 (three) basic rules at Elliot Wave so that we do not misjudge trading positions using this theory