Perfect Intraday Elliott Wave Example and Lesson

May 22, 2009: 10:33 AM CST

The deeper I get into the Elliott Wave method, the more I am impressed with how frequently its patterns show up across all timeframes almost identical to the teachings of Ralph Elliott 70 years ago.  Let’s take a look at a perfect Elliott Wave pattern – complete with ideal fractal waves – on the intraday SPY for May 20 and 21.

First, test yourself.  Look at this chart and see if you can draw out the 5 Elliott Waves in this chart.  Then see if you can identify the fractal waves.

Take a moment to look back at the Elliott Wave Cheat Sheet series I’m developing:

1.  Elliott Wave Introduction Cheat Sheet
2.  Elliott Wave #2:  Wave Labeling
3.  Elliott Wave #3:  Best Trades to Take

Pay particular attention to the “Introduction” which shows the following chart that details the Fractal Nature of Elliott Wave:

Now, flip this chart upside down for a “Down” impulse and take a look at how the chart above ‘sub-divides’ into the ideal or perfect fractal structure.  Take a moment to practice your own Elliott Count on the SPY chart before revealing the answer.  Click “Continue Reading” for the answer and full chart below.

SPY Elliott Fractal Example:

It’s endlessly amazing to me and I hope for you as well.

Remember, you don’t have to know Elliott Wave to be a great trader – there are many methods to derive edge and make money in the market.  Elliott Wave Methodology is just one of them – but it’s a difficult method to learn and you often need someone to show it to you through repeated examples.

I’m putting together more instructional materials on Applying Elliott Wave Patterns to Intraday Trading which will be available soon.  Sign-up for the Afraid to Trade newsletter (top right box on the homepage) and check out the “Coming Soon” Updates page for additional information on the educational and daily subscription services I will be offering soon.

There’s many other lessons I could share with you from this chart, but I’m merely trying to pique your curiosity and show you that the Elliott Wave Principle isn’t as mysterious as you might think it is.  It takes time to learn, but I believe the journey is worth it!

Corey Rosenbloom, CMT
Afraid to Trade.com

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11 Comments

11 Responses to “Perfect Intraday Elliott Wave Example and Lesson”

  1. Meine Analyse, Trades und das Depot - Seite 1376 - Aktienboard Says:

    […] Meine Analyse, Trades und das Depot http://blog.afraidtotrade.com/perfec…le-and-lesson/ der hat ganz gurte Beitr?ge eigentlich schaut Euch unten zu SPY seinen EW Beitrag an….kanns nur […]

  2. Bob Says:

    Nice example… if it were only so easy every time.

    This example poses an illustration of something that's puzzled me… Elliot Waves are generally referenced as a five wave expansion, followed by a three wave contraction.

    I have noted other references to waves having a 3,3,5 pattern.

    Your example clearly illustrates a larger five wave down pattern… Can you comment on this 3,3,5 nuance and on the underlying psychology driving the differing patterns?

    Thanks!
    Enjoy Memorial Day.
    Bob

  3. Bob Says:

    Nice example… if it were only so easy every time.

    This example poses an illustration of something that's puzzled me… Elliot Waves are generally referenced as a five wave expansion, followed by a three wave contraction.

    I have noted other references to waves having a 3,3,5 pattern.

    Your example clearly illustrates a larger five wave down pattern… Can you comment on this 3,3,5 nuance and on the underlying psychology driving the differing patterns?

    Thanks!
    Enjoy Memorial Day.
    Bob

  4. Multiple Convergences Mark Intraday Low Lesson | Afraid to Trade.com Blog Says:

    […] As I mentioned in this morning’s post, we had a perfect Elliott Wave 5-wave move down into the final lows.  That alone is enough for some Elliotticians to ‘get long’ at the final doji, especially given that we had a fractal (smaller) 5-wave structure complete at the lows. […]

  5. Perfect Intraday Elliott Wave Example and Lesson | Penny Stock Trading System Blog Says:

    […] to practice your own Elliott Count on the SPY chart before revealing the answer.  Click “Continue Reading” for the answer and full chart […]

  6. Intraday Elliott Wave and Flag Lesson in SPY June 16 | Penny Stock Trading System Blog Says:

    […] well as a prior intraday post similar to this one entitled, “Perfect Intraday Elliott Wave Example and Lesson” from May […]

  7. Perfect Intraday Elliott Wave Lessons from SPY June 25 | Afraid to Trade.com Blog Says:

    […] Perfect Elliott Wave Intraday Example and Lesson May 22 […]

  8. Perfect Intraday Elliott Wave Lessons from SPY June 25 | Penny Stock Trading System Blog Says:

    […] Perfect Elliott Wave Intraday Example and Lesson May 22 […]

  9. Mahenderkothari Says:

    chambal fertilizer last week high 98.20,low 84.80,close 90.25,can any one tell met when to buy and sell using elliot wave theory

  10. Anil Bishnoi Says:

    it is a nice presentation but what is there in the third wave, as there was a big price gap?

  11. owen Says:

    Thanks for the cheat sheets you did a good job. sweet and simple