What is a wave count?
How do I use your charts for
trading and investing?
What do the labels on your
What is the difference between the labels (w) and (a) in a corrective wave?
What is the difference between the Preferred and Alternate wave counts?
What do the non-numeric labels mean?
What do the
ratings stand for and how are they computed?
What is considered a high rating?
What are 'Macro' and 'Micro'
Can I copy your charts for my
I don't receive your Charts
Update newsletter. Why?
your analysis of a single stock change in a week?
Q: What is a wave
A: An Elliott Wave count is an interpretation of how the Elliott Wave
Principle applies to a specific chart. It simply shows the beginning and end of
the completed waves on the chart, as well as the current wave. To learn more on
the Elliott Wave Principle, click here.
do I use your charts for trading and investing?
A: Our free charts consist of the major stock and sector indices. These indices are not
directly tradable the way stocks are. However, these indices have their
corresponding Exchange-Traded Funds (ETFs), options, and futures. These
instruments move in exactly the same way that the stock indices move.
Using the same principle for trading waves 3, 5, and C, you
may use the charts to identify these tradable waves whenever they occur, and
trade accordingly the instrument of your choice. Read our General FAQ for more on this.
Trading ETFs, options and futures involve risk and are not suitable for all
Q: What do the labels on
your chart mean?
A: The labels on the chart indicate the end of the specified wave, and the
beginning of the next wave. For example, if the wave is labeled (2), this means
that the point where the label is located is the end of wave (2), and the start
of wave (3). The different wave degrees are labeled differently from one another
(I) (II) (III) (IV) (V)
(A) (B) (C)
I II III IV V
A B C
(1) (2) (3) (4) (5)
(a) (b) (c)
1 2 3 4 5
A B C
i ii iii iv v
a b c
1 2 3 4 5
a b c
Source: The Elliott Wave
Q: What is the difference between a (w) and an (a) wave?
A: Both the (w) and the (a) waves are corrective in nature. However, the (w)
wave signifies the start of a double or triple three, while the (a) wave
indicates the development of either a flat or zigzag correction.
Q: What is the difference between the Preferred and Alternate wave counts?
A: In applying the Elliott Wave Principle, you will find that there are
actually a number, sometimes up to millions, of ways to interpret a chart. The
preferred wave count is our interpretation of a chart that has the highest
confidence level. The alternate wave count, on the other hand, has our second
highest confidence level.
Q: What do the
non-numeric labels mean?
A: The non-numeric labels indicate the start of either a motive or
corrective wave, depending on the label. The following describes these
im - impulse wave
ld - leading diagonal
ed - ending diagonal
ct - contracting triangle
fl - flat corrective wave (regular, expanded, and running)
zz - zigzag corrective wave
dz - double zigzag
tz - triple zigzag
d3 - double three (denoted by w-x-y)
t3 - triple three (denoted by w-x-y-xx-z)
To learn more about motive and corrective waves, please
visit our Tutorial section.
Q: What do
the ratings stand for and how are they computed?
A: The ratings are determined through a point system used by
the analysis software. Part of the rating is computed based on points for each
rule and guideline satisfied by a certain Elliott wave interpretation.
Therefore, the more guidelines are satisfied, the higher the rating. However, a
good part of the rating computation is based on the rank of a single
interpretation as compared to the other possibilities.
Nevertheless, it provides an objective
assessment on the probability of the interpretation. However, a high rating
still DOES NOT guarantee that the analysis is 100% correct.
Q: What is
considered a high rating?
A: The ratings can sometimes go as high as 500, but is
actually infinite in the upper boundary. Lowest possible rating, of course, is
zero, but those would naturally not merit any consideration. We would consider a
good rating as between 120 and 180. However, a rating lower than 120 does not
necessarily mean it should be ignored. Most of the time, a certain
interpretation will be the best forecast despite a low rating.
are 'Macro' and 'Micro' signals?
A: Macro signals are wave charts that give a 'bigger picture' of the wave
analysis. These wave charts usually start at a major high or low.
Micro signals, on the other hand, are wave charts that give
a 'close-up' of the wave analysis, usually a detailed wave count of the
currently unfolding wave in the corresponding Macro signal chart. These wave
charts usually start at the latest minor high or low.
Can I copy your charts for my own use?
A: The Elliott Wave Signals website, including our charts, is copyrighted.
However, you may copy our charts for your personal use provided that no
alteration is made on the images. Elliott Wave Signals should be given full
credit on publication and copyright.
I don't receive your updates newsletter. Why?
A: If you don't receive our regular newsletter updates, your email address
may have been removed from our mailing list. Here are the possible reasons:
You may have unsubscribed from
our list on your own free will.
The email address you provided
during registration may have been invalid.
Company ID reserves the right
to remove anyone from our mailing list for the purpose of keeping our list
"clean" and valid.
removes an email address from our list ONLY when our newsletter emails get
"bounced back" three times in a row. If you wish to re-join our
subscriber list, you may re-enter your email
Q: How can your analysis of a single stock change in a week?
A: The Elliott Wave Principle, just like any other analysis procedure, is
not error-proof. The principle makes use of past (actual) data to analyze and
project a future target. And most of the time, a single graph results in two or
more valid wave counts, some more probable than others. In each day that the
stock market operates and trades are transacted, new data becomes available and,
therefore, becomes part of the past data on which an analysis is based. And so,
as new data becomes available, and depending on the actual market movement (as
compared one's analysis and projection), a previous wave count that was the
least probable could suddenly become the most probable wave count.
An occasional change in wave count is not bad at all. The more
important point to remember, however, is to be just as flexible as (if not more
than) the market. There is never a definite path that the stock market will
take. Therefore, a trader should be flexible enough to enter/exit the market
when necessary, especially when market movement is not as expected.
Remember, more important than knowing this path is to know the
direction that the market is headed. And in EW terms, more important than
knowing whether a correction's wave form is a zigzag or a flat, for example, is
to know that a correction is taking place. Therefore, you can prepare yourself
to enter the market when that correction is over.