Elliott Wave Theory Flashcards
7 cards from real CMT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Elliott Wave Theory flashcards as text
What is an 'ending diagonal' (diagonal triangle) in Elliott Wave Theory?
Answer: A wedge-shaped impulse variant where all five sub-waves subdivide into three waves, common in Wave 5 or Wave C
An ending diagonal is a wedge-shaped pattern in which all five sub-waves subdivide into three-wave structures, most commonly appearing in the Wave 5 or Wave C position.
What does the 'guideline of alternation' predict in Elliott Wave Theory?
Answer: If Wave 2 is a sharp correction, Wave 4 tends to be sideways, and vice versa
The alternation guideline states that Wave 2 and Wave 4 tend to differ in character: if Wave 2 is a sharp zigzag, Wave 4 is likely a sideways flat or triangle, and vice versa.
What is a wave 'extension' in Elliott Wave Theory?
Answer: An elongated impulse wave with additional sub-divisions, typically in Wave 1, 3, or 5
An extension is an elongated impulse wave that shows additional sub-divisions (appearing to contain 9 waves instead of 5), most commonly occurring in Wave 3.
In Elliott Wave Theory, 'wave degree' refers to which concept?
Answer: The relative size and time duration of waves within a fractal hierarchy
Wave degree describes the relative size and timeframe of waves in a hierarchical fractal structure, ranging from Grand Supercycle (multi-century) down to Subminuette (minutes).
The 'Rule of Equality' in Elliott Wave Theory states that when Wave 3 is extended, what relationship do Waves 1 and 5 tend to exhibit?
Answer: Waves 1 and 5 tend to be approximately equal in length or related by a Fibonacci ratio
The Rule of Equality states that when Wave 3 is extended, the non-extended Waves 1 and 5 tend to be approximately equal or share a Fibonacci ratio relationship.
A common method to project Wave 5's price target is to multiply the net distance from Wave 1's start to Wave 3's end by what Fibonacci ratio, added to Wave 4's terminus?
Answer: 0.618
Wave 5 is frequently projected by multiplying the net distance from Wave 1's start to Wave 3's end by 0.618 and adding that to Wave 4's low.
What is a 'leading diagonal' in Elliott Wave Theory, and how does it differ from an ending diagonal?
Answer: A leading diagonal appears in Wave 1 or Wave A position; an ending diagonal appears in Wave 5 or Wave C position
A leading diagonal occurs in the Wave 1 or Wave A position (start of a new trend) with overlapping sub-waves, while an ending diagonal occurs in Wave 5 or Wave C (terminal position).