Explain: Elliott Wave Theory

Because counting the waves is an art, not a science .

In plain English: Wave 2 can drop a lot, but it cannot drop below the start of Wave 1. If it does, the count is invalid. You are not in a new trend; you are still in a correction. explain elliott wave theory

This means a 5-wave impulse on a 1-minute chart is actually a tiny piece of a larger 5-wave impulse on the daily chart. And that daily chart is a tiny piece of a decade-long 5-wave impulse. Because counting the waves is an art, not a science

To maintain the integrity of the wave count, Elliott established three unbreakable rules. If any of these are violated, the count is considered incorrect: Wave 2 can never retrace more than 100% of Wave 1. You are not in a new trend; you are still in a correction