1. Basic model
The development of market prices in the long run, takes the shape of five waves of a special structure. Three of them are marked with numbers 1, 3 and 5, really make the direction. They are separated by two setbacks (countertrend interruptions) - waves of opposite direction, are marked numerals 2 and 4, as shown in Fig.1-1. These two rollback, no doubt, are an integral part of the overall directional movement.
RN Elliott is not specifically pointed out that there is only one basic shape - "five-wave" model, but this is certainly a fact. At any time the market can be estimated as being somewhere in the basic five-wave model, the highest level of the wave motion. Since the five-wave model is the base figure of the movement of the market, all other models can be drawn from it.
Wave style (wave mode)
There are two styles of wave development: motive (motive) and adjustment (corrective). Wave driving style (or driving waves *) are five-wave structure, while the corrective wave style (or corrective waves *) have a three-wave structure, or their species. Driving style is the foundation and five-wave structure in Figure 1, 1, and its uni-directional components, ie waves 1, 3 and 5. Their structures are called "drivers" because they result in significant market movement. Adjustment style underlies all pullbacks in rotivopolozhnom direction, which include waves 2 and 4 in Figure 1 1.
Their structure is called a "correction" because they can only perform a partial rollback or "correction" of the movement made any previous driving wave. Thus, these two styles are fundamentally different and their roles, and their structure, as will be described in detail in this course.
Other entries on the topic:
Lesson 2: The Subtleties of the full cycle
Lesson 3: The basic provisions
Lesson 7: Flat correction (3-3-5)
Lesson 8: Horizontal triangles
Lesson 9: Combinations of such corrective
Lesson 10: Specifying the alternation
Lesson 11: Analysis and forecasts of corrective waves
Lesson 12: The Education Channel
Lesson 13: Additional information
Lesson 14: Individuality as one of the wave characteristics
Lesson 15: From theory to practice ...
