What Is Pure Elliott Wave?

In the context of Elliott Wave analysis, “pure Elliott Wave” refers to a strict adherence to the rules and guidelines outlined by Ralph Nelson Elliott, the creator of the Elliott Wave Principle. It emphasises unwavering discipline and a commitment to following the principles of the Elliott Wave Principle without any deviation or subjective interpretation.

By strictly following these rules and guidelines, as practitioners of pure Elliott Wave analysis we aim to minimise subjectivity and personal biases in our market analysis. This disciplined approach enhances the accuracy and consistency of our Elliott Wave counts and forecasts, allowing for a more objective interpretation of market trends and potential trading opportunities.

Pure Elliott Wave analysis requires a disciplined approach, where the focus is solely on the patterns and structures observed within the price data and on identifying wave degrees, which involves analysing waves within different timeframes to understand the larger context of the market movement.

Furthermore, pure Elliott Wave analysis requires assessing the probability of various wave scenarios (bullish and bearish Elliott wave counts). This involves considering alternative wave counts and evaluating the likelihood of each scenario based on wave rules and guidelines, and the right look of the wave count.

Pure Elliott Wave analysis involves meticulous wave counting to determine if the current price movement is part of an impulsive wave or a corrective wave. Identifying the correct wave degree and assessing the probability of different bullish and bearish Elliott wave counts can help us anticipate potential turning points or target levels for price movements.

When analysing a corrective pattern that requires advanced Elliott Wave analysis of complex patterns, as seen above, our application of pure Elliott Wave analysis on GOLD involves meticulously counting and labelling of the internal waves to determine the overall wave structure. By accurately assessing the probability of different corrective wave scenarios, we can anticipate potential trend reversals or breakout opportunities. This highlights the detailed nature of wave counting, wave degree identification, and probability assessment involved in pure Elliott Wave analysis.

By strictly obeying the rules and guidelines, we aim to gain objective insights into market trends, anticipate reversals, and identify potential trading opportunities.