Many of you must have seen this wave in the last time, I have one of trading strategies if you see wave like that,
Eliott Wave Pattern 5-3
Wave 5 pattern is called impulse wave. The push wave moves to form the main trend, while corrective waves move against the general trend. Waves 1, 3, 5 are called waves of motivation or motives, while waves 2 and 4 are corrective waves.
The meaning of each wave (bullish):
Wave 1: Price makes an initial movement up. This is usually caused by a small number of people (for various reasons, whether real or figurative) feeling that prices are at their lowest, so this is the right time to buy. This causes prices to rise.
Wave 2: At this point, quite a lot of traders consider the price to be too high then act to take advantage by selling it. As a result, the first profit taking and correction occurred.
Wave 3: These waves are generally the longest and strongest trend. In this phase,
fundamental news and technical trading signals have attracted many traders. As a result, prices will soar, usually prices will soar higher than during wave 1.
Wave 4: In this phase, some people take profits, and feel the price is nearing the peak. But there are some people who still think that prices are still in an upward trend, so these waves tend to be still weak.
Wave 5: This is the phase where the price is too high to buy, and the power that is able to keep prices up is due to mere of hysteria.
Note that the length of each wave is not always exactly the same as the comparison in the picture, it can be longer or shorter, that is natural.
I also used this type of things in sometimes but whenever you got the tips to use that reading properly it will not work in all the time that is the problem here to follow the Strategies and more anything we need to guide by someone otherwise anything is not easily possible.
