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Easy Elliott Wave Pattern

There are thirteen specific Elliott wave patterns like stochastic patterns.  The wave patterns help an Elliott wave trader to time the market more precisely.   This article will allow traders to easily trade the patterns more profitably.  The objective is to teach wave traders how to identify and trade the easy segment of an Elliott wave pattern. 

Trading Easy Wave Patterns

The easiest segment of an Elliott wave pattern is the ending segment or last segment.  A smarter or more advanced Elliott wave analyst can easily spot the first segment as it is developing, but almost every wave analyst can recognize the last segment. 

One of my favourite sports is the Formula One.  Many will accept that it becomes easier to predict the race winner as the last lap kicks off.  Similarly to the F1's last lap, it is easier to spot and trade more profitably an Elliott wave pattern's last segment.

First Easy Elliott Wave Pattern

The 1st easy Elliott wave pattern is the ending segment of a flat corrective wave.

Look for it on 15M and 4H charts if you are a day trader.  A swing trader will use weekly and monthly charts.  An investor and position trader ought to trade the flat correction C-wave (last segment) on both quarterly and yearly charts. 

Of course, those who master the top-down trading
will verify the validity of the pattern on the corresponding higher time frame.  For example if one spots the start of the last segment on the fifteen-minute chart, one must check the 4H chart.  Learn and master the top-down trading method today.

2nd Easy Elliott Wave Pattern

The C-wave of a zigzag pattern is another easy Elliott wave pattern.  The same steps apply as for the flat correction pattern.  At the end of the B minor wave of a zigzag pattern, one will get ready to time the market at the start of the C-wave. 

Please do all other verification including the fundamental analysis.  Also never go ahead of the price-action, and do not assume anything.  The markets love to reward patient and defensive investors.

It is quite easy to spot the C minor wave of a zigzag pattern because of its structure 5, 3, 5.  The internal waves of a zigzag pattern are usually visible (not hidden), but be aware that both its A and C minor waves can be a sharp move.

3rd Easy Elliott Wave Pattern

Love to trade the second zigzag of a double zigzag or third one of a triple zigzag
corrective wave because one is dealing with the last segment of an Elliott wave pattern.  It is usually easier to trade the last zigzag.  

Though the double and triple zigzag patterns do not occur very often, if one spots one at its midpoint (end of its B wave), one does not want to screw it up.  Pause and handle it like a master.  I prefer to use this strategy on the monthly chart or higher. 

Are you getting it? Alright.

4th Easy Elliott Wave Pattern

Those who delight in trading the easiest segment of an Elliott wave pattern can not afford to ignore the Y minor wave of WXY wave pattern.  I would like to inform traders that it is not that simple to trade the Y minor wave in comparison to others because WXY wave is a complex corrective wave. 

However, one can steadily learn to master WXY wave structure.  I will prefer the monthly and higher time frames when I am applying the Y-wave trading or investment strategy.

For those of you that come across that setup on the daily or lower time frames, it is essential to check the corresponding higher time frame.  Monthly chart for the daily and weekly chart is the corresponding higher time frame for the 4H chart setups.

5th Easy Elliott Wave Pattern

The fifth easy Elliott wave pattern includes the ending diagonal and E-wave of ABCDE Elliott wave triangle.  However, in those instances, I would rather not trade those last segments, but instead the reversal trading signal that occur soon after.

6th Easy Elliott Wave Pattern

The 5th wave itself is the last segment of the motive wave.  Now, one ought to understand that when the 5th bullish wave is underway, contrarian traders with deep pocket will begin to check the fundamentals and market environments in view to take early bearish positions before the corrective phase starts.  The opposite is also true in a bearish fifth wave.  

Therefore, an Elliott trader who engages in trading the last segment of the trend (5th wave) must take care to avoid being a loser. 
Nevertheless, if the risk-reward ratio is appealing, one can safely get paid easily because the 5th wave is the last lap like any other wave pattern's last segment.

Similarly, the fifth minor wave of an extended 3rd or fifth wave itself is also an easy play for traders who combine the Elliott wave forecast, top-down trading and the fundamental analysis.

One can also take advantage of the fifth minor waves of the C-waves of the zigzag and flat correction.

Conclusion

Elliott wave patterns trading is not always easy, but to make it easier, one can focus on the last segment of an Elliott wave pattern.

Firstly, it is important that one understands how the pattern is formed ( or developed), its internal wave structures, and when and where does it often occur.  

The next thing to do is to develop a strategy that will truly help one to get the best out of it.  Lastly, never use those strategies alone, but combine them with the fundamental analysis without bypassing the economic news.  Also see which time frames offer the best high probability trade setups.  

I hope, one will test my preferences that I have stated earlier, and select what works for one.  The easy Elliott wave pattern can be used for both trading and investing.  It is recommendable that one has both trading and investing accounts.  In 2020, I am a fan of trading 212 investment and trading accounts.  Check them out, and see if they are for you too.

Alright that will do for today.

I hope this article will be useful to many.  If that is the case, please share it and remember to say few good words about us in various trading forums.  I will appreciate that very much.  Thank you for visiting 24Elliottwaves.com today.

This article is written by G. Beaulieu
Founder of 24Elliottwaves.com
Happy Trading And Investing To All.