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The document discusses Elliott Wave Theory and provides labeling conventions for different degrees of waves including: - Grand Supercycle, Supercycle, Cycle, Primary, Intermediate, Minor, Minute, and Minuette waves - It notes that wave degree is not based on specific price or time lengths, but rather on the form, size, and position of waves relative to other component and encompassing waves. - Identifying the precise degree of a wave in real time can be challenging, but knowing the relative degree is usually more important for forecasting than precise degree.

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42 views1 page

Download-Online-Free 8

The document discusses Elliott Wave Theory and provides labeling conventions for different degrees of waves including: - Grand Supercycle, Supercycle, Cycle, Primary, Intermediate, Minor, Minute, and Minuette waves - It notes that wave degree is not based on specific price or time lengths, but rather on the form, size, and position of waves relative to other component and encompassing waves. - Identifying the precise degree of a wave in real time can be challenging, but knowing the relative degree is usually more important for forecasting than precise degree.

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mcemce
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© © All Rights Reserved
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Wave Degree 5s With the Trend 3s Against the Trend

Supercycle (I) (II) (III) (IV) (V) (A) (B) (C)


Cycle I II III IV V ABC
Primary [1] [2] [3] [4] [5] [A] [B] [C]
Intermediate (1) (2) (3) (4) (5) (a) (b) (c)
Minor 12345 ABC
Minute i ii iii iv v abc
Minuette 12345 abc

The above labels preserve most closely Elliott's notations and are traditional, but a list such as that
shown below provides a more orderly use of symbols:

Grand Supercycle [I] [II] [III] [IV] [V] [A] [B] [C]
Supercycle (I) (II) (III) (IV) (V) (A) (B) (C)
Cycle I II III IV V ABC
Primary I II III IV V ABC
Intermediate [1] [2] [3] [4] [5] [a] [b] [c]
Minor (1) (2) (3) (4) (5) (a) (b) (c)
Minute 12345 abc
Minuette 12345 abc

The most desirable form for a scientist is usually something like 11, 12, 13, 14, 15, etc., with subscripts
denoting degree, but it's a nightmare to read such notations on a chart. The above tables provide for
rapid visual orientation. Charts may also use color as an effective device for differentiating degree.

In Elliott's suggested terminology, the term "Cycle" is used as a name denoting a specific degree of
wave and is not intended to imply a cycle in the typical sense. The same is true of the term "Primary,"
which in the past has been used loosely by Dow Theorists in phrases such as "primary swing" or
"primary bull market." The specific terminology is not critical to the identification of relative degrees,
and the authors have no argument with amending the terms, although out of habit we have become
comfortable with Elliott's nomenclature.

The precise identification of wave degree in "current time" application is occasionally one of the
difficult aspects of the Wave Principle. Particularly at the start of a new wave, it can be difficult to
decide what degree the initial smaller subdivisions are. The main reason for the difficulty is that wave
degree is not based upon specific price or time lengths. Waves are dependent upon form, which is a
function of both price and time. The degree of a form is determined by its size and position relative to
component, adjacent and encompassing waves.

This relativity is one of the aspects of the Wave Principle that make real time interpretation an
intellectual challenge. Fortunately, the precise degree is usually irrelevant to successful forecasting
since it is relative degree that matters most. Another challenging aspect of the Wave Principle is the
variability of forms, as described through Lesson 9 of this course.

WAVE FUNCTION

Every wave serves one of two functions: action or reaction. Specifically, a wave may either advance
the cause of the wave of one larger degree or interrupt it. The function of a wave is determined by its
relative direction. An actionary or trend wave is any wave that trends in the same direction as the wave
of one larger degree of which it is a part. A reactionary or countertrend wave is any wave that trends in
the direction opposite to that of the wave of one larger degree of which it is part. Actionary waves are
labeled with odd numbers and letters. Reactionary waves are labeled with even numbers and letters.

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