Elliott Waves

Labelling a move as waves: a five-wave impulse with the trend and a three-wave correction against it.

The labelling is not unique, and that is its defining property. The same peak can be read as the end of wave five, of wave three or of wave one, and each reading implies a different continuation. That is why the page shows several readings at once rather than one "correct" answer.

Some rules are hard — breaking them invalidates a reading outright. Others, such as Fibonacci levels, are reference points. The first are checked mechanically; the second stay reference points and never become a promise about price.