# Patterns For Elliott Wave Theory

Studying the patterns is very important in order to apply the Elliott Wave Principle correctly. The pattern of the market action, if correctly determined, not only tells you to what price levels the market will rise or decline but also in which way (or pattern) this will happen.

When you are able to recognize the patterns, and apply these patterns correctly, you can trade the Elliott Wave Principle. This is not easy to accomplish, but after some study and with the help of our “detailed and personalized daily chart service” tool you will find it easier. Humans, with sufficient experience, can analyse markets in an instance, which is a requirement for trading.

Our daily chart service restricts itself mainly to the patterns mentioned in the Classic Elliott Wave patterns. We analysis these patterns using the Classic Rules.

We also use the Modern Rules, as mentioned under Modern Elliott Wave patterns, we have defined more patterns, which we have found after more than 10 years of research and experience, which definitions are more profitable in our view. This way we make available our knowledge and experience without any extra costs.

After looking at the big picture we then determine which rules are preferable.

Explaining the following descriptions, on the left, you will find a picture of a bull market, and on the right one of a  bear market.

The pattern section depicts the structure, while the description gives additional information. The pattern should follow the rules and guidelines, which can also be derived from the picture. Furthermore the section, in which wave explains in which wave, as a part of a larger wave degree, the patterns normally occur. Last but not least the pattern must have an internal structure as described. This is very important to determine which pattern you are dealing with.

# Classic Elliott Wave patterns

Below we have depicted all Elliott Wave patterns that are allowed under a very strict interpretation of the Elliott Wave Principle. Elliott detected most of these patterns, except for the Diagonal 2 pattern. The WXY and WXYXZ pattern have not been defined as such by Elliott, but he already had discovered these sort of combinations.

In our daily analysis we use the WXY and WXYXZ also for Double and Triple Zigzags. This is a much more consistent way of labeling these patterns, since now the ABC waves in waves W and Y are sub waves and an unfitting Wave X has been eliminated.

Because of this, in our daily analysis we no longer have to search for more than five waves. Using the old definition of for example a Triple Zigzag, the search was for eleven waves, apart from inconsistencies this would have slowed down our analysis considerably.

# 2. MODERN ELLIOTT WAVE PATTERNS

In our Modern Rules observations and analysis we have defined extra patterns that are mostly hybrid
patterns derived from the known patterns that have existed from the beginning. In addition, we allow for
the occurrence of more patterns in some waves. For example, wave 1 may also contain a diagonal1,
diagonal2 and impulse 2 pattern, in addition to the other trend patterns, that a classic interpretation
accepts.