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Elliott Wave Cycle

Have you been wondering what is the Elliott wave cycle?  Or are you trying to play the game of the Elliott cycle investing

Please rest assured that you are not alone.  With this article I will help one have a better understanding of the Elliott wave cycle and play the game of wave cycle trading more accurately.

Before we get into the deepest end of this essential topic, note that the next step for a market player who has already mastered the market timing using the top-down trading and Elliott wave forecast is the financial market cycle.
Let's get started.

Understanding Cycles As An Elliott Wave Trader

Generally, there are global economic cycles, a financial market cycle,  cyclical stocks or financial instruments, individual financial instrument's cycle, a sector's cycle and the Elliott wave cycle.

There are also short, medium and long term cycles. 

However, to avoid confusion, one must retain that a cycle is formed of mini cycles.  A cycle that is already formed of mini cycles can be by itself a mini cycle to a bigger cycle. 

In fact the structure of a cycle is fractal because a cycle can be broken down into mini identical cycles when one is dealing with the Elliott wave cycle.

Why Elliott Wave Cycle?

One that recognises the correlation between a lower degree Elliott wave cycle and the subsequent higher degree cycle can avoid jumping in the boiling water of the financial markets because he or she can patiently enter the markets without too many sleepless nights. 

One that also knows that a new cycle has just started will be adding more new positions in a timely fashion instead of leaving so much cash littered on the table. 

On the other hand, one will become very cautious as a cycle is about to end contrary to many courageous crazy investors. 

Please allow me to say that one that really masters cycles or Elliott cycles holds the key to profitable trading and investing.

Furthermore, the Elliott wave cycles allow one to navigate the financial markets more peaceful like a soldier who knows where are all the enemy's traps. 

Types Of Elliott Wave Cycles

In the Elliott wave vocabulary, it is preferable to talk about lower and higher degree wave cycles instead of short, medium and long term cycles. 

So, there are lower and higher degree Elliott wave cycles.  Do not worry yet.  I will be explaining everything.

What is happening is that the lower degree cycles are forming the higher ones.   The good thing about the Elliott wave cycles is that each lower degree cycle is specifically linked to a unique higher degree cycle.

That is a revelation, but many experts are still searching for it.  Nevertheless, I can help because I have already cracked it. 

That good news about the fact each higher degree Elliott wave cycle has its corresponding lower degree cycle helps to avoid confusion.  Truly, that also helps to connect the dots when everyone seems a bit lost.

All Elliott wave cycles are fractals, meaning that each cycle of a higher or lower degree can again be broken down into similar mini structural cycles. 

Consequently, one can also predict a lower degree cycle using a higher degree cycle or forecast the higher degree cycle by using the structures of the lower degree Elliott wave cycle.  It works both ways.

I know that some may be thinking
"Please George, slow down because it is getting a bit too much".  No worries, take a pause or go back to the starting point.  Do not go further until you have understood what I am discussing now.

What Is An Elliott Wave Cycle?

Now that we know that there two types of Elliott wave cycles, let's explain what is an Elliott wave cycle.

(Elliott Motive Wave (Trend) )+ (Whole Corrective Phase) = Elliott Wave Cycle

The Elliott wave cycle is formed of the motive wave (trend) plus the correction.
For example, one counts 1, 2, 3, 4, 5 monthly waves (without any Elliott wave rule violations) in an uptrend that is subsequently corrected by a flat correction. 

One will conclude that an Elliott wave cycle that has started from the 1st wave is now completed in the end of flat correction (ie end of the C-minor of the flat correction) provided the correction is not prolonged or becomes complex.

A motive wave plus WXY or zigzag pattern form an Elliott wave cycle as long as the correction has ended.  A trending phase plus a complex correction also form an Elliott wave cycle.

Am I making sense so far?  If not, please  post your questions or comments under any video at 24Elliottwaves YouTube channel and in due course I will answer you.

Are you getting tired?  Well, stand up and walk around a bit.  That will help.

It is now clear that the Elliott wave cycle is not just the trend or motive wave, but both the trend (Yin) and whole correction (Yang).  Are we all in tuned?  Good!

Structure Of An Elliott Wave Cycle

Each healthy Elliott wave cycle is formed of three mini cycles. 

Usually, some Elliott wave practitioners do disagree with me on that point.

That is normal, and it is OK by me.  However, I am shamelessly sticking to my findings because it all adds up nicely.

The first mini cycle is formed of the 1st and second waves.
The second mini cycle is formed of the third and 4th waves.
The third mini cycle is formed of the 5th wave and first leg of the correction (not the whole correction). 

Usually, the first leg of the correction will break the trend line of the motive wave or 5th wave's common sense trend line.

The continuation of the correction beyond that first leg is due to the correction of the whole motive wave. 

Please understand that each impulse or motive wave must be corrected.  Right?

Therefore, the 2nd wave is correcting the 1st wave and the 4th wave is correcting the third wave.  Now what is correcting the fifth wave? 

It is not the whole corrective phase, but that first leg of the correction.  There is one more impulse wave or motive wave.  What is that?
It is the motive itself from the 1st wave to 5th wave.  Right?  Well, that also must be corrected.  Yes or no? 

You are correct, yes.  The largest part of the whole correction after that first leg is correcting the trending phase or motive wave. 

At this point, one understands why I call myself an eagle-eye Elliott wave trader.  That is also the reason why though my fellow Elliott wave traders find it hard to agree me that a normal Elliott wave cycle is composed of three mini Elliott wave cycles I still stick to my initial observations. 

Are they disagreeing too quickly? Please do not answer that question yet.

Hopefully, by this point, one is having a better understanding of the Elliott wave cycle

Have you been wondering how I discovered all these things?  Well, it is just when I like something, and I really want to understand it, I will just make a firm decision, and not rest till I have a clear understanding. 

Really, the key is the willingness to understand, to understand more and understand clearly.

Therefore, If one really likes the Elliott wave principle, one should not just stand at the first open door like everyone else, but keep finding out more and more without stop. 

Before we wrap it, I want to touch upon how one can connect a specific lower degree wave cycle to its daddy higher degree cycle.

Lower And Higher Degree Wave Cycles

To avoid a long discussion, I will no longer keep you waiting because it is a vast topic.

The lower degree Elliott wave cycles of the 3M chart form the higher degree cycle of the hourly time frame.

The lower degree mini hourly wave cycles form the higher degree daily chart Elliott wave cycle.

Similarly, the mini daily chart cycles form the higher degree monthly chart Elliott wave cycle.

Lastly, the monthly mini wave cycles form the higher degree yearly cycle.

I can go on and on about other lower degree Elliott wave cycles and their specific higher degree wave cycles, but I am resisting that temptation for now. 

I will be discussing those elements on the 24Elliottwaves YouTube channel. Feel free to subscribe to my channel.

I hope it is not too much for you.  I will stop here, but please do not think that we have covered everything.  Surely, I will be adding more related pages.  Stay tuned, because I will be posting new articles soon.


Mastering the Elliott wave cycle can dramatically help to improve both the Elliott wave analysis and wave forecast.  It is a captivating topic, therefore it is normal that one feels elevated.  Nevertheless, the knowledge is just the first step, one must endeavour to combine the top-down trading, Elliott wave forecast and Elliott wave cycles to dominate the financial markets timing. 

That may not happen in one month, but one will get there if one is persistent. 

Really, the Elliott wave cycle never ends because a cycle can become a mini cycle of another mega cycle; and the process can restart.  Obviously, it is possible to connect the dots of all those cycles and mini cycles if one keeps eyes wide open. 

May I sip the last drop of my favourite drink? 
That is it Elliott wave cycle traders.  Soon, I will be back with another wave trading article.  Please stay tuned.

Thank you for reading everything, and visiting  It means a lot to me.  If you like the article, please share and bookmark it.  Also, please, say nice words about us in your favourite Elliott wave trading forums.  I will really appreciate that.

I wish you the very best.
Happy Trading To All

This article is written by
George Beaulieu
Founder Of