Vibe Waves

Mr. Elliott was like, "Bruh, when the market's vibin', it moves in these dope 5-3 wave patterns."

The first 5-wave jam is what we stan as impulse waves. 💥

The last 3-wave squad is called corrective waves. 📉

So in this cycle, Waves 1, 3, and 5 are the homies that follow the trend, aka they're motive, while Waves 2 and 4 are just chilling and being corrective.

Don't even trip, Waves 2 and 4 aren't the same as that ABC corrective pattern thingy (we’ll spill all the tea next lesson) tho! 😂

Alright, let's peep the deets on this 5-wave impulse pattern. Easier if you can see the vibes:

Hmm, kinda hazy, right? Let’s add some ✨magic✨ colors up in here!

Yo, that's fire! 🌈 It's a whole vibe now! We love colors, so each wave's got its glow along with the wave count. 🎨

Here’s the dramatic breakdown of what pops off in each wave.

We’re gonna vibe with stocks as our example 'cause that’s what Mr. Elliott rode with, but low key, it don’t even matter. Currencies, bonds, gold, oil, or even Tickle Me Elmo dolls—it's all good. 🔥

The clutch part tho—this Elliott Wave Theory also snaps in the foreign exchange game.

Wave 1

Wave 1's the moment we're like, "New vibes in da house!" as the old trend peaces out and a fresh one emerges. 🎉

If the old trend was like major sad boi hours (bearish), now it’s flipping to sunshine and rainbows (bullish). (And obvi, vice-versa.)

This kicks off when a small squad suddenly thinks the price is madd cheap, so they go in 💸, causing the price to yeet up!

Detecting this wave early is tricky 'cause if the last trend was bearish, market vibes might still be on the down low.

Wave 2

Wave 2 is the first pullback from Wave 1, back in line with the old scene, ya dig?

By this point, some peeps in the OG wave think the stock's a little sus and kinda pricey, so they grab their bag and bounce.

That'll drag the stock's price down. But chill, the fall won’t be as intense as before 'cause it's once again seen as a steal. 💸

Fun fact: Wave 2 ain't supposed to go further than all of Wave 1. 🚫🚀

Wave 3

Wave 3’s the longest and most lit wave. Time for the spotlight! 🌟 The whole crew's in now, public frenzy style. 🤯

During Wave 3, everyone wakes up like, "Yas, that old trend's hella over," and they’re all about that new-new. 🔝

The wave blows up 'cause everyone and their moms wanna cop this stock. 🚀🚀 It's now past the peak Wave 1 ended on.

In a bullish market, the price zooms up hard. In bearish land, it’s the savage reverse.

Wave 4

Wave 4's a chill wave, saying "Yo, we had some wild times, but it’s time to cool down." 🧊

Peeps cash out 'cause the asset’s looking a little boujee again.

This one’s tricky to pin but generally shouldn't drag longer than the previous Wave 3. ⏳

Wave 4 tends to be weak, 'cause the crew is still hyped and looking to “buy on the dips“ when the price dips a bit.

Wave 5

Wave 5's the mic drop of the current trend. 🎤🚨

This is when almost everyone's eyes are glued to that asset, and it’s pretty much fueled by pure FOMO. 😱

Folks start spitting wild reasons to nab that asset and all but tackle anyone who’s hatin'. 😂

This wave’s the final hype burst before new trend vibes start rolling in.

Eventually, all the hypebeasts get tired, price chills out.

Then, it’s game over for the asset's overpriced era. Bold ones begin shorting, sliding us into the ABC pattern's DMs. 📩

Extended Impulse Waves

ICYMI, in Elliott Wave land, one of the three impulse waves (1, 3, or 5) will always be extraaa.

Basically, there’s always one wave flexing longer than the squad, no matter what level you're on.

Elliott said fam, it's usually Wave 5 acting all long-boi.

Over time though, wave labeling got a glow up 'cause more crew started claiming Wave 3 as their star player. 🏆