MONEY WAVE

2021년 12월 19일

The Money Wave is the holy grail of the Elliott wave. The money wave is the third wave of an Elliott wave structure.

The third wave starts at the completion/end of wave 2 and aggressive entry can be upon a clear reversal candlestick while more positions can be added upon the breakout at the end of wave 1.

Targets are 161.80% or 200% of wave 1. It might sometimes exceed this if there is elongation.

Third waves move fast with strength, and the direction is clear when the price is within a third wave. Day traders may trade short-lived third waves seen on hourly charts. More long-term traders may trade third waves at larger degrees on daily and weekly charts. Long-term investors would trade third waves on weekly and monthly charts. Which degree you are looking to trade will depend upon your risk appetite and your experience.

As a general rule, trading waves below a minor degree involve more buying and selling. You have to watch the market daily, even hourly. The more times you enter and exit the market the more room for error, and so the greater the risk. Trading at minor, intermediate, and primary degrees involves fewer entries and exits and there is less risk. If your wave count is correct and you identify a third wave you can hold a position for weeks or months for profit.


Learn the following ratio of Fibonacci Level you need to determine the point of Entry and Exit.

1.Wave 2 should end at 50%, 61.8%,76.4%, 78.6% or 85.4% of Wave1

2.Wave 3 use to be 161.8% of Wave 1-2 but it can also be 200%, 261.8%,323.6% of Wave 1-2.

3. Wave 4 should end at any of this level of Fib 14.6%, 23.6%, 38.2%, or 50% of Wave 3 but not more than 50%.

4. Wave 5= Wave 1 length or 61.8% of Wave 1-3 or 123.6%, 161.8% of Wave 4.