Waves Within a Wave

Like we mentioned earlier, Elliott waves are fractals. Each wave is made of sub-waves. Huh? Let me show you another picture. Pictures are great, aren't they? Yee-haw!

Do you see how Waves 1, 3, and 5 are made up of a smaller 5-wave impulse pattern while Waves 2 and 4 are made up of smaller 3-wave corrective pattern?

Always remember that each wave is comprised of smaller wave patterns. This pattern repeats itself...

FOREVER!

To make it easy to label these waves, the Elliott Wave Theory has assigned a series of categories to the waves in order of the largest to the smallest. They are:

• Grand Supercycle
• Supercycle
• Cycle
• Primary
• Intermediate
• Minor
• Minute
• Minuette
• Sub-Minuette

Okay, to make things much clearer, let's see how an Elliott Wave looks in real life.

As you can see, waves aren't shaped perfectly in real life. You'll also learn it's sometimes difficult to label waves. But the more you stare at charts the better you'll get.

Besides, we're not going to let you go at it alone! In the following sections, we'll give you some tips on how to correctly and easily identify waves as well as teach you how to trade using Elliott Waves. Surf's up!

1. Elliott Wave Theory
2. The 5 - 3 Wave Patterns
3. ABC Correction
4. Waves Within a Wave
5. The 3 Cardinal Rules and Some Guidelines
6. Riding Elliott's Waves
7. Summary: Elliott Wave Theory

Forex Training in the School of Pipsology