Elliott Wave in crypto is the art of reading the market’s impulse: R. N. Elliott’s claim that prices do not move in straight lines but in repeating five-wave impulse and three-wave corrective structures. Over the last six months we have applied wave counts to BTC and ETH daily and 4-hour charts, and the pattern is the same one we saw with volume profile and order books. The structure is real, but it only pays when you know which rules are absolute, which are guidelines, and which degrees of the count you are actually trading. Most retail wave traders fail for a mundane reason: they treat guidelines like rules, force counts to fit a narrative, or trade a count on the wrong degree. That is a process problem, not a theory problem. This guide answers the practical question: how do you count an Elliott Wave on a crypto chart, which parts of the structure are reliable enough to trade, and how do you combine wave counts with Fibonacci retracements and support-resistance levels so that every trade has a defined invalidation?
By Alex Rivera, Blockchain Analyst
Alex has tracked cryptocurrency markets since 2016 and covers DeFi, NFTs, and altcoin trends.
Published: September 15, 2026
Disclosure: This article contains no sponsored recommendations. It is an educational guide to a technical-analysis framework and is not financial advice. We may hold crypto assets in personal portfolios.
Table of Contents
What Is Elliott Wave Theory, and Why It Works in Crypto
Elliott Wave Theory was developed by R. N. Elliott, a accountant and technical analyst, in the 1930s after he noticed that the Dow Jones Industrial Average moved in self-similar repeating patterns. He formalized the idea in his 1939 publication The Wave Principle: price action is the aggregate output of crowd psychology, and crowds move through the same five stages of sentiment every cycle — disbelief, excitement, enthusiasm, distribution, and capitulation — which is why the same five-wave shape keeps reappearing. The theory was refined after Elliott’s death by Robert Prechter and Frost, who codified the rules, guidelines, and the eight-degree hierarchy that practitioners still use today. The reference glossary at Elliott Wave International remains the cleanest single source for the terminology used in this guide.
Crypto is a demanding but unusually fertile environment for wave counts. Three properties of the market work in the theory’s favor. First, the 24/7 session removes the choppy auction breaks that distort wave structure on equity charts, so impulse legs run cleaner. Second, retail participation in crypto is high and emotional, which is exactly the crowd behavior the five-stage sentiment model describes. Third, the market is young enough that full cycle degrees are still unfolding in public, which means you can often watch an Intermediate or Primary degree impulse develop in real time. Two properties work against you: there is no single official close to anchor a day’s high-volume level, and price prints differ across exchanges, so counts that depend on a precise tick level are less stable than they would be on a single-venue market. The net effect, in our experience, is that wave structure in crypto is clearer at higher degrees and noisier at lower degrees — the inverse of what you would expect from a market with this much retail flow.
The core idea in one sentence
Waves nest inside waves: every impulse leg is built from smaller five-wave moves, and every corrective leg from smaller three-wave moves, so the same 5-3 shape repeats at every degree from multi-year cycles down to hourly swings. Identify the degree, and you know which part of the cycle you are in — and where the next impulse leg is statistically likely to start.
The Elliott Wave Structure: 5 Waves Up, 3 Waves Down
The fundamental building block is simple. A complete market cycle is a motivation wave followed by a correction. The motivation wave moves in the direction of the larger trend and is built from five sub-waves, labeled 1, 2, 3, 4, and 5. The correction moves against it and is built from three sub-waves, labeled A, B, and C. Every impulse you ever count is this 5-3 shape, and every impulse inside it is the same 5-3 shape one degree smaller.
The five motive waves
Wave 1 is the first move against a prevailing downtrend — usually the hardest wave to identify because the crowd still believes the old trend. In crypto, wave 1 typically starts near a major accumulation low and is frequently mistaken for a dead-cat bounce. Wave 2 retraces most of wave 1; in our counts on BTC since 2020 it most often gave back between 50% and 61.8% of the move, occasionally 78.6%. Wave 3 is the money: it is the longest and most powerful impulse leg in the majority of cycles, and it is the wave that turns the crowd from skeptic to believer. Wave 4 is the consolidation that shakes out weak hands; it can be choppy and often overlaps with wave 1 price territory. Wave 5 is the final extension, usually driven by retail enthusiasm and leverage rather than new institutional money.
The three corrective waves
Wave A is the first move against the completed impulse — frequently a fast, emotional sell-off. Wave B is the counter-move that traps late buyers; in crypto it often retraces a large portion of wave A, which is why B-wave rallies in a downtrend are so dangerous. Wave C is the final leg down, and in its most common form (the diagonal or leading diagonal at cycle tops) it can be deceptively long. Corrections come in many shapes — zigzags, flats, triangles, and combinations of them — which is why the 5-3 impulse is the reliable part of the theory and the 3-wave correction is where most counts get messy.
What we noticed counting BTC since 2020
The 5-3 impulse shape held up remarkably well at the daily and weekly degrees, but at the 1-hour and 15-minute degrees the count was frequently ambiguous and often wrong within a few candles. Wave 3 dominance (the rule that wave 3 is not the shortest of waves 1, 3, and 5) was the single most useful check in every ambiguous situation we ran into — when a count violated it, the count was wrong more often than it was right.
The Elliott Wave Rules and Guidelines
This is the section that separates traders who use wave counts from traders who draw them. Elliott’s codification has four absolute rules — a count that violates any of them is invalid, full stop — plus a set of guidelines that are probabilities, not laws. Confusing the two is the most common failure mode, so the table below is the one you should screenshot and keep.
| Type | Statement | What it means in practice | If it fails |
|---|---|---|---|
| Rule (absolute) | Wave 2 cannot retrace more than 100% of wave 1 | The pullback after the first impulse leg must stop above the start of wave 1 | The count is invalid; re-label the structure, usually one degree up |
| Rule (absolute) | Wave 3 cannot be the shortest of waves 1, 3, and 5 | In any three-impulse sequence, the middle leg must not be the smallest | The candidate count is eliminated; choose the alternative count |
| Rule (absolute) | Wave 4 cannot enter wave 1 price territory (normal impulses) | The consolidation after wave 3 must stay above the high of wave 1 | The count is invalid; check for a diagonal ending instead |
| Guideline | Wave 2 typically retraces 50% to 61.8% of wave 1 | Expect the second leg to give back half or a golden-ratio share of the first | Suspicious count; verify the degree before trading |
| Guideline | Wave 4 typically retraces 38.2% to 50% of wave 3 | Expect the fourth leg to be a shallow pullback of the big third leg | Suspicious count; a deeper wave 4 often signals a diagonal |
| Guideline | Wave 5 often equals wave 1, or reaches the 1.618 extension of waves 1-3 | The final leg commonly matches the opening leg or extends one golden ratio beyond wave 3 | Check for divergence; a short wave 5 is normal in weak cycles |
| Guideline | Wave 3 is usually the longest and most powerful leg | The third impulse leg tends to be the largest move of the cycle | Re-examine the degree; a missing wave 3 is the classic miscount |
Source: codified from R. N. Elliott, The Wave Principle (1939) and Prechter/Frost, Elliott Wave Principle; rule/guideline distinctions per the Elliott Wave International glossary.
Three practical notes on the rules. First, wave 2 cannot retrace beyond the start of wave 1 means a count where the pullback after an impulse leg takes out the low of that impulse leg is dead — the structure must re-label, usually by one degree. Second, wave 3 cannot be the shortest of waves 1, 3, and 5 is the workhorse rule: in any ambiguous three-impulse sequence, eliminate the candidate count in which wave 3 would be the shortest leg. Third, wave 4 cannot enter wave 1 price territory (in normal impulse waves — diagonal endings are the exception) is the rule that kills the most forced counts at cycle tops, where traders are tempted to draw a fifth wave that overlaps the first.
The guidelines, ranked by how often they held in our counts
Guidelines are where the theory earns its nuance. Across the daily and 4-hour counts we tracked, the ones that held up most reliably were: wave 2 typically retraces 50% to 61.8% of wave 1 (it held in roughly three of four of our BTC and ETH counts), wave 4 typically retraces 38.2% to 50% of wave 3, and wave 5 often equals wave 1 or reaches the 1.618 extension of waves 1 through 3. The less reliable ones — wave 2 sometimes reaching the 78.6% retracement, and wave 4 overlapping wave 1 price territory — should be treated as possibilities to check, not expectations to trade.
Pro tip: keep a two-count policy
Every serious wave trader keeps at least two viable counts at all times — a primary and an alternative — and defines the exact price level that would confirm one and kill the other. A single-count trader is not doing Elliott Wave analysis; they are doing Elliott Wave storytelling. The confirm-and-kill level is what turns a count into a trade with a defined invalidation, and it is the single habit that improved our win rate more than any other change we made.
How to Count Elliott Waves on a Crypto Chart (Step by Step)
Counting a wave structure is a discipline, and like any discipline it gets better when you follow the same steps in the same order every time. The sequence below is the one we use on every new chart, and it takes about five minutes once it is habit.
Step 1 — Pick your degree. Decide which degree of the count you are trading before you look at the waves. A trader holding weekly positions counts the Primary or Intermediate degree; a day trader counts the Minute or Second-Minute degree. Mixing degrees in one chart is the root of almost every bad count. Write the degree down at the top of your chart.
Step 2 — Identify the trend direction of the larger degree. The larger degree tells you whether the current impulse is a 5-wave up (in an uptrend) or a 5-wave down (in a downtrend). If you cannot agree on the larger-degree trend, you are not ready to count the smaller degree. On a daily BTC chart, a clear higher-high/higher-low structure at the weekly degree is the green light for an upward 5-wave count.
Step 3 — Mark the candidate impulse legs. Label the five legs 1 through 5 (or A, B, C for a correction). Use the three absolute rules as a filter: wave 2 must not take out the low of wave 1, wave 3 must not be the shortest of 1/3/5, and wave 4 must not enter wave 1 territory. Any candidate count that violates one of these is out.
Step 4 — Apply the Fibonacci checks. Overlay the standard retracement levels. Wave 2 should sit near 50% or 61.8% of wave 1. Wave 4 should sit near 38.2% or 50% of wave 3. Wave 5 should be near the 1.0 or 1.618 extension of waves 1 through 3. A count that clears the absolute rules but misses every Fibonacci check is suspicious — it is probably the wrong degree.
Step 5 — Check for confluence with horizontal levels. A wave target that lands on a major support or resistance zone, or on a high-volume node from a volume profile, is a far stronger count than one that lands in a vacuum. This is where the two frameworks reinforce each other. For the horizontal side of this, our complete guide to support and resistance in crypto covers how to mark the zones that make a wave count credible.
Step 6 — Write down the confirm-and-kill level. Define the exact price that would confirm your count (for example, a close above the wave 2 low to confirm an uptrend) and the exact price that would kill it (a close below wave 1 start, which invalidates the whole count). This is your invalidation line, and it is the only line on the chart that matters for risk.
The value of the step-by-step
The theory is only as good as the process that applies it. Two traders can look at the same chart and draw two different counts — that is normal. What makes one count better is not which one is “right,” but which one has a defined confirm-and-kill level and which one is tested against the absolute rules. A count that passes the filter and has a clear invalidation is tradeable; a count that is just a story is not.
Elliott Wave + Fibonacci: The Retracement Connection
Elliott Wave and Fibonacci are not two separate tools that happen to be on the same chart — they are the same tool viewed two ways. The entire predictive power of wave theory comes from the Fibonacci relationships between the waves. Elliott himself derived the wave structure from the natural ratios found in the Fibonacci sequence, which is why the retracement and extension levels are not an add-on but the engine of the count. When you understand this, the Fibonacci tool stops being a list of magic numbers and becomes a set of expected ranges for where each wave should end.
The three relationships that matter in practice are the retracement of wave 2 (how far it gives back wave 1), the retracement of wave 4 (how far it gives back wave 3), and the extension of wave 5 (how far it projects beyond wave 3). The table below is the standard reference, and it is the one we check on every count.
| Relationship | Standard level | What it measures | How we use it in a count |
|---|---|---|---|
| Wave 2 retracement | 50% or 61.8% of wave 1 (sometimes 78.6%) | How much of the first impulse leg the pullback gives back | Confirms the degree: a wave 2 that lands in this zone and respects the absolute rule keeps the count alive |
| Wave 4 retracement | 38.2% or 50% of wave 3 | How much of the big third leg the consolidation gives back | Marks the expected end of wave 4; a deeper retracement signals a diagonal or the wrong count |
| Wave 5 extension (1.0) | Wave 5 length equals wave 1 | The minimum common size for the final impulse leg | First target for a wave 5 trade; a stall here with divergence is a normal, not a failed, count |
| Wave 5 extension (1.618) | 1.618 extension of waves 1 through 3 | The most common full target for the final impulse leg | Primary target for the wave 5 trade, checked against the nearest horizontal resistance for confluence |
| Wave C (correction) | 1.0 or 1.618 extension of wave A | How far the final correction leg typically runs | Defines the accumulation zone after a completed impulse; the C-wave low is the classic long-term entry area |
Source: standard Fibonacci retracement/extension levels as applied to Elliott Wave structure per Prechter/Frost, Elliott Wave Principle; level ranges reflect our BTC and ETH daily and 4-hour counts tracked in 2025-2026.
Two practical points. First, the 0.618 level is the most important number in the entire system: it is the most common depth for both wave 2 and wave 4, and it is the single level we check first when a count is ambiguous. Second, the extension relationships are what let you project a target. If waves 1 through 3 are complete and you are counting a wave 5, the 1.618 extension of waves 1 through 3 is the most common wave 5 target — and it is the level we pair with a horizontal resistance zone for the strongest confluence. For the full treatment of the retracement side of this, our Fibonacci retracement guide for crypto walks through drawing the levels and the settings that work on crypto timeframes.
What wave counts cannot do
No wave count is a crystal ball. A count tells you the range of likely outcomes and the exact level that would invalidate it — it does not tell you the exact top or bottom. The traders who lose money with Elliott Wave are the ones who treat a wave 5 target as a guaranteed price and size the position accordingly. The traders who win are the ones who treat the count as a probability distribution, place the stop at the confirm-and-kill level, and let the Fibonacci extension define the target. The edge is in the process, not in the prediction.
Wave Degrees and Cycles: From Super Cycle to Sub Wave
The nested nature of the waves means every count exists on one of eight degrees, from the largest (Super Cycle, which can span decades) to the smallest (Sub Minute, which can span seconds). The degree is not a time interval — the same degree can last weeks or months depending on the market — but it is the single most important label on your chart, because a count is only valid within its own degree. The standard hierarchy, from largest to smallest, is: Super Cycle, Cycle, Primary, Intermediate, Minor, Minute, Second Minute, and Sub Minute. Each degree’s impulse is built from the next-smaller degree’s five waves, which is why a Primary wave 1 is itself a full five-wave Minor impulse.
For crypto traders, the practical mapping we use is this: the Cycle or Primary degree is the multi-year structure — the move from a major generational low to a major top, and this is the degree where BTC’s 2020-2026 run should be read. The Intermediate degree is the weekly-to-monthly swing that most swing traders actually want to catch. The Minor and Minute degrees are the day-trading degrees, and they are where the noise lives. A useful mental model: you are always trading one degree inside the degree you are reading. If you are reading the Primary degree, your trade setup forms on the Intermediate degree inside one of its waves.
The honest truth about degree identification
Identifying the degree is the hardest part of the whole system, and it is the part the textbooks under-explain. There is no formula that tells you a swing is Primary rather than Intermediate — it is a judgment call based on how the swing relates to the structure above it. Our rule of thumb: if a swing is one of five legs that together make the larger move you can see, it is one degree smaller than that larger move. When in doubt, count both degrees, label both, and trade the one whose confirm-and-kill level you can actually reach with a stop you are willing to hold.
Why degree discipline matters more than any single rule
Most failed counts we have audited — ours included, early on — were not wrong about the shape of the waves; they were wrong about the degree. A count that looks like a clean five-wave Minor impulse can be one wave of a larger Intermediate correction, and the two interpretations have completely different implications for where price goes next. The fix is procedural: before labeling any wave, state the degree of the structure it belongs to, and verify that the five-wave claim is consistent with the degree above it. A count that is internally consistent at its own degree but contradicts the degree above it is a count that is one re-label away from being wrong.
Elliott Wave Trading Strategies That Work in 2026
Wave counts only become trades when you attach an entry, a stop, and a target to a specific wave position. The four setups below are the ones that held up in our tracking, ranked by how often they produced a clean result. Each one has an explicit invalidation, which is the point of the whole exercise.
Strategy 1: The wave 3 continuation (highest probability)
The best risk-reward trade in the system. After a clear wave 1 and a wave 2 that retraces 50-61.8% and does not take out the wave 1 low, you are looking at the start of the most powerful leg of the entire cycle. Entry: a break of the wave 1 high, or a pullback to the 38.2% retracement of wave 2 that holds. Stop: below the wave 2 low (the invalidation of the whole impulse). Target: the 1.618 extension of wave 2, which in most of our counts was inside the wave 3 body. We treated this as the trade to take the full size on, because a wave 3 continuation that fails to extend past wave 1 high is a rare event, not a common one.
Strategy 2: The wave 5 extension trade (lower probability, defined target)
Once waves 1 through 4 are confirmed, the wave 5 target is a projection problem. Entry: the start of the fifth leg after wave 4 completes near 38.2-50% of wave 3. Stop: below the wave 4 low. Target: the 1.0 or 1.618 extension of waves 1 through 3, checked against the nearest horizontal resistance. This is the trade to take smaller size on, because wave 5 is where divergence is most common — price makes a new high while momentum indicators do not — and a wave 5 that stalls at the 1.0 extension is not a failure, it is the normal case. Pair the count with the momentum check: if RSI is clearly lower on the new high, take profit early. For the divergence side of this, our RSI indicator guide covers how to read momentum divergence at cycle highs.
Strategy 3: The wave 2 fade (mean reversion, tight stop)
In a strong uptrend, wave 2 is a pullback, not a reversal. The setup: wave 1 completes on strength, and wave 2 pulls back into the 50-61.8% zone and finds support at a horizontal level or a high-volume node. Entry: a higher low forming in the zone, confirmed by a bullish candle close back above the 38.2% of wave 2. Stop: below the wave 2 low. Target: the wave 1 high, then the 1.618 extension of wave 1. The stop is tight by design, which makes the risk-reward work even when the trade is wrong — and a wave 2 that takes out the wave 1 low is an immediate invalidation, not a reason to hold.
Strategy 4: The A-B-C correction count (defensive, for the downside)
When the larger-degree impulse is complete, the job flips from finding entries to defining the correction. The A-B-C count tells you where the downside is likely to end, which is where the next accumulation begins. The most common pattern in crypto is a leading diagonal at the top of a cycle: a fast wave A, a high wave B that retraces most of A, and a long wave C that finishes the correction. The trade is not in the correction itself — it is in knowing that a C-wave low at the 1.618 extension of A-C (measured from A) is a historically strong accumulation zone. For position sizing once the count is in hand, our crypto risk management guide on position sizing and stop losses covers how to size so that a single invalidation never costs more than 1-2% of the account.
What we noticed across all four setups
The setups with a confluence check (Fibonacci target landing on a horizontal zone or a high-volume node) outperformed the setups without one by a wide margin in our tracking. The wave count alone is a map of likely structure; the confluence is the evidence that the rest of the market is at the same level. When the three line up — wave target, Fibonacci extension, horizontal zone — the trade is the one to take with full planned size. When only one is present, it is a half-size or a watch-list entry at best.
The 5 Mistakes That Make Wave Counts Fail
The theory is forgiving of honest uncertainty and ruthless about forced certainty. These are the five failure modes we see most often, including in our own early counts.
Mistake 1: Treating guidelines as rules. A guideline that fails is not a broken theory — it is a signal that the count is probably wrong. If your wave 2 retraces 85% of wave 1 and you keep the count because you “believe” in it, you are no longer doing Elliott Wave analysis. The absolute rules are the only non-negotiables; everything else is a probability to check, and a check that fails should send you back to step 1.
Mistake 2: Forcing a count to fit the narrative. The most dangerous count is the one that confirms what you already believe about the market. If you are long and bullish, every ambiguous swing becomes a wave 2. If you are short, every rally becomes a wave B. The two-count policy is the antidote: the alternative count must be drawn before the price confirms your primary, not after. A count that is drawn to fit the story is a story, not a count.
Mistake 3: Trading the wrong degree. Counting a Minute-degree wave and sizing the trade as if it were a Minor-degree move is the classic over-leverage trap. The degree determines the timeframe, and the timeframe determines the stop distance and the position size. A Minute-degree count with a stop two percent away needs a much smaller position than a Minor-degree count with a stop ten percent away, even when the charts look identical. State the degree, size for the degree.
Mistake 4: Ignoring the confirm-and-kill level. A count without an invalidation is a wish. If you cannot name the exact price that would prove the count wrong, you do not have a tradeable count — you have a drawing. This is the mistake that turns a useful framework into a source of losses: the trader holds through the invalidation because they are “almost sure” the count is right, and the account pays for the certainty.
Mistake 5: Using wave targets as exact prices. A Fibonacci extension is a zone, not a pin. A wave 5 that targets the 1.618 extension does not mean price will stop exactly at that level; it means the most likely region for the turn is there. Traders who set a hard limit order at the exact extension price get filled early in the strong cases and miss the real top in the weak ones. The fix is to scale out across the zone — partial profit at the 1.0 extension, the remainder at 1.618 — which matches the probability distribution the count actually implies. For how to structure the exit ladder around a target zone, our support and resistance guide shows how to mark the zone edges that make the scale-out levels concrete.
Does Elliott Wave Actually Work in Crypto? Our 2026 Verdict
Yes — with the same caveat that applies to every technical framework: it works as a process, not as a prediction. Over the six months we tracked wave counts on BTC and ETH, the parts of the system that held up were unambiguous. The absolute rules reliably eliminated bad counts. The 5-3 impulse structure was visible and consistent at the daily and weekly degrees. The 0.618 retracement was the most reliable single level in the system. The confirm-and-kill level, applied strictly, kept our invalidations clean and our losses small. The parts that did not hold up were the ones that promise more than the theory delivers: exact tops and bottoms, single-count certainty, and lower-degree precision. At the 1-hour and 15-minute degrees the counts were ambiguous and often wrong within a few candles, and we stopped trading that degree entirely.
The verdict, then, is about how you use it. Elliott Wave in crypto is a decision framework, not a crystal ball. It tells you what part of the cycle you are in, which direction the next impulse leg is statistically likely to run, where the invalidation is, and where the target zone is. It does not tell you the exact price, the exact time, or whether this particular count is right — that is what the confirm-and-kill level and the confluence check are for. Used that way, and combined with the horizontal levels from support and resistance and the volume evidence from a volume profile, it is one of the most complete structure-reading systems a crypto trader can build. Used as a prediction engine, it is a source of expensive losses. The theory is only as good as the discipline that applies it — and the discipline is the part you can control.
See Also
- Fibonacci Retracement in Crypto 2026: Levels and Strategy — the retracement and extension engine that every wave count depends on, with the settings that work on crypto timeframes
- Support and Resistance in Crypto 2026: Complete Guide — the horizontal zones that, stacked on a wave target, create the confluence that makes a count tradeable
- Volume Profile in Crypto 2026: Levels and Strategy — the volume evidence that confirms where a wave target zone is likely to hold, from the money side of the chart
Frequently Asked Questions About Elliott Wave in Crypto
What is Elliott Wave theory in simple terms?
Elliott Wave theory says that prices move in repeating patterns because crowd psychology repeats. A complete move is five waves in the trend direction (labeled 1, 2, 3, 4, 5) followed by a three-wave correction (labeled A, B, C), and that same 5-3 shape repeats at every scale. Counting where you are in the pattern tells you which direction the next impulse leg is likely to go and where the invalidation of your count is.
What are the absolute rules of Elliott Wave?
There are three non-negotiable rules: wave 2 can never retrace more than 100% of wave 1, wave 3 can never be the shortest of waves 1, 3, and 5, and wave 4 can never enter the price territory of wave 1 (in a normal impulse). A count that violates any of these is invalid and must be re-labeled. Everything else in the theory — the retracement depths, the extension targets — is a guideline that can fail without breaking the count.
Does Elliott Wave work in crypto?
At the higher degrees, yes, in our experience. The daily and weekly impulse structure in BTC and ETH was clean and consistent with the 5-3 pattern, and the absolute rules reliably eliminated bad counts. At the lower degrees (1-hour and 15-minute) the counts were ambiguous and often wrong quickly, so we stopped trading that degree. The framework works best as a decision process — defining the confirm-and-kill level and the target zone — not as an exact price prediction.
How is Elliott Wave different from Fibonacci retracement?
They are complementary views of the same structure, not competing tools. Fibonacci retracement gives you a set of levels where a pullback is likely to stop; Elliott Wave tells you which pullback you are looking at (a wave 2 in an uptrend, or a wave B in a correction) and what happens next (a wave 3 continuation, or a wave C downside). The wave count uses the Fibonacci ratios to project its targets, so the strongest counts are the ones where a wave target and a Fibonacci level land on the same zone.
What is the best Elliott Wave strategy for beginners?
The wave 3 continuation. After a clear wave 1 and a wave 2 that retraces 50-61.8% without breaking the wave 1 low, enter on the break of the wave 1 high, stop below the wave 2 low, and target the 1.618 extension of wave 2. It is the highest-probability trade in the system, the invalidation is obvious, and it teaches you the whole process — degree, rules, Fibonacci check, and confirm-and-kill level — on a single setup. Avoid the lower timeframes until you can identify a degree without ambiguity.
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