Elliott Waves

The simplified version of Elliott Wave theory states that you will have a 5 wave sequence in either an up or down direction, followed by some kind of corrective pattern (most of the time), and then a new 5 wave sequence in the opposite direction.

The full Elliott Wave theory is much more complicated than this, but a good overview can be found at here. We recommend you read the overview to get a good basic understanding of Elliott Wave theory before utilizing these scans in your trading strategies.

The Elliott Wave scans are used to identify when issues are in one of the last 3 stages of the 5 wave sequence. The last 3 stages of an overall upward wave sequence are Wave 3 Up , Wave 4 Down , Wave 5 Up. The last 3 stages of an overall downward wave sequence are Wave 3 Down, Wave 4 Up, Wave 5 Down.