How We Analyze Markets
A systematic, rule-based approach to Elliott Wave analysis. No guesswork, no discretionary bias, just structured wave counting with verified outcomes.
Wave Identification
Every analysis begins with identifying the current wave position on the weekly timeframe. We determine which wave of the larger degree cycle the market is in, establishing the macro context before zooming into shorter timeframes.
We follow Ralph Nelson Elliott's original rules strictly: Wave 2 never retraces beyond the start of Wave 1, Wave 3 is never the shortest impulse wave, and Wave 4 never overlaps Wave 1 in an impulse. When a count violates a rule, it is discarded immediately.
Multi-Timeframe Confluence
After establishing the weekly wave position, we analyze the daily and 4-hour charts to identify the subdivisions. The three timeframes must align, a bullish weekly count should show bullish daily and 4-hour structures.
This top-down approach prevents the common mistake of trading a corrective bounce as an impulse. If the weekly shows a developing Wave C, the daily might show an impulse, but the larger context tells us this impulse will eventually fail.
Fibonacci Price Targets
Once the wave position is established, Fibonacci ratios provide precise price targets. Wave 3 typically extends to 161.8% of Wave 1. Wave 2 commonly retraces to 61.8%. These are not arbitrary, they are derived from the mathematical relationships within the wave structure.
We look for clusters where multiple Fibonacci levels from different degree waves converge. These confluence zones are where the highest-probability reversals occur.
Invalidation Levels
Every wave count has a clear invalidation level, the price at which the count is proven wrong. We mark these on every analysis. If Wave 4 overlaps Wave 1, the impulse count is invalid. If Wave 2 retraces beyond Wave 1's start, the count is invalid.
This is what makes Elliott Wave uniquely valuable for risk management: your stop loss is not arbitrary but mathematically defined by the wave structure.
Outcome Tracking
Every analysis carries a direction, target levels and an invalidation level, all stated before the market moves. Each outcome is then recorded against those published levels by the same rule, on every instrument we cover.
We do not publish a scoreboard. What we publish is the analysis itself: every call stays dated in the public archive with the levels it rested on, so you can read it against what the market actually did.
See Our Methodology in Action
Browse our latest analyses, read how we measure outcomes, or try the platform yourself.