Even though the Elliot Waves theory is one of the most difficult approaches in the online trading experience, involving strict pattern recognition and various approaches to the problem, it may seem rather not so probable for the beginners to utilize this strategy into practice.
One may become quite confused whenever trying to count all the correct wave movements and while analyzing these data streams, there can be also yet another factor that will keep such trajectory at bay. Most important would be to fully understand this features, as a complete discerning and yet one that has come to an actual trajectory of a specified chart area, one that might come as the starting point for many such to begin with.
While this process requires some initial thought to it, the basic hints that are certainly helpful are going to keep the whole progress in a probable manner. At first, one must consider a wider time frame to count the waves more properly, from higher to lower in a descending order.
Whenever analyzing an impulsive movement, be sure to check that the third one is in the five wave sequence all the time. The second wave cannot be in a retracing positions from the very beginning. The fourth wave on the other hand should have a retracement level about 38%.
There is also a difference between the impulsive and corrective waves, for the first group travels with numbers as labels, as the second one will be tagged letters. Such practice should always be considered as the essential base for the Elliot Waves theorem, starting with the basic concepts while moving towards those more advanced in due time.