Keep this quick guide handy on your desk to instantly cross-reference your charts: Wave Element Core Behavior / Identity Primary Rules & Guidelines Key Fibonacci Ratios Trend Initialization Hard to spot; born out of market despair. Wave 2 Aggressive Retracement Must not breach the start of Wave 1. 61.8% or 78.6% of Wave 1 Wave 3 The Power Phase High volume; cannot be the shortest wave. 161.8% or 261.8% of Wave 1 Wave 4 Sideways Consolidation Cannot overlap into Wave 1 price territory. 38.2% of Wave 3 Wave 5 Final Blow-off Top Divergence on momentum indicators is common. Equals Wave 1, or 61.8% of Waves 1-3 Wave A Correction Genesis Often mistaken for a minor pullback. Wave B Bull/Bear Trap Deceptive counter-trend bounce; low volume. 50% to 100% (or more) of Wave A Wave C Capitulation Phase Strong, devastating liquidation wave. 100% or 161.8% of Wave A 6. Practical Trading Application and Mentorship Tips
Elliott Wave structures are inherently tied to Fibonacci ratios. Traders use these mathematical ratios to predict the exact entry and exit targets for upcoming waves. Retracement Targets (Finding Entries) Typically retraces 50%, 61.8%, or 78.6% of Wave 1. Wave 4: Typically retraces 23.6%, 38.2%, or 50% of Wave 3.
This comprehensive guide serves as your definitive Elliott Wave cheat sheet. Whether you are looking to build your own reference guide or seeking to understand the core structures taught in advanced trading mentorship programs, this article breaks down the complex rules, guidelines, and patterns into actionable insights. 1. The Core Philosophy of Elliott Wave Theory Elliott Wave Cheat Sheet Mento Pdf
Moves against the main trend, consolidating the gains or losses before the next primary move. 2. The 5-Wave Motive (Impulse) Structure
Julian picked up the laminated sheet. It was simple. Almost too simple. Impulse. Correction. Repeat. The psychology of the crowd mapped out in geometry. Keep this quick guide handy on your desk
If you are looking for specific, actionable tips to refine your trading strategy using this cheat sheet, tell me: Are you trading , forex , or stocks ?
Elliott Wave theory is intrinsically linked to Fibonacci retracements and extensions, which are crucial for forecasting price targets in your cheat sheet. Often retraces 0.510.5 over 1 end-fraction 0.61810.618 over 1 end-fraction of Wave 1. Wave 3: Usually extensions of 1.6181.618 2.6182.618 3.6183.618 times the length of Wave 1. Wave 4: Often retraces 0.38210.382 over 1 end-fraction 0.510.5 over 1 end-fraction of Wave 3. Wave 5: Frequently equals the distance of Wave 1, or is 0.6180.618 times the combined distance of Waves 1-3. Corrective Wave C: Often equals the length of Wave A or is 1.6181.618 times Wave A. 4. How to Use an Elliott Wave Cheat Sheet (PDF/Mento) Wave B Bull/Bear Trap Deceptive counter-trend bounce; low
Wave 3 can never be the shortest of the three actionary waves (Waves 1, 3, and 5). It is usually the longest and most powerful.