Elliott waves, as previously stated, are fractals.
Each wave is composed of subwaves. Huh?
Allow me to show you another image.
Do you notice how Waves 1, 3, and 5 are composed of a smaller 5-wave impulse pattern, but Waves 2 and 4 are composed of smaller 3-wave correction patterns?
You are witnessing fractals!
Remember that each wave is made up of smaller wave patterns.
This pattern will continue indefinitely!
To make labeling these waves easier, the Elliott Wave Theory has given them to a set of categories, from largest to smallest. They are as follows:
Grand Supercycle (multi-century)
Supercycle (about 40–70 years)
Cycle (one year to several years)
- Primary (a few months to a couple of years)
- Intermediate (weeks to months)
- Minor (weeks)
- Minute (days)
- Minuette (hours)
- Sub-Minuette (minutes)
A Grand Supercycle is composed of Supercycle waves, which are composed of Cycle waves, which are composed of Primary waves, which are composed of Intermediate waves, which are composed of Minor waves, which are composed of Minute waves, which are composed of Minuette waves, which are composed of Sub-Minuette waves. Did you get everything?
To make things clearer, let’s look at how an Elliott Wave looks in real life.
You’ll also discover that labeling waves might be tricky at times.
However, the more you study charts, the better you will get.
Next Lesson: Elliott Wave Theory’s Three Cardinal Rules