First we need to understand Elliott wave - What is Elliott Wave Principle? Why was it formed? Does the market follow the rules of the Elliott wave?

In the book Elliott - Visual Guide to Elliott Wave Trading by Wayne Gorman and Jeffrey Kennedy. It has been said that the Elliott Wave Principle is a technical analysis pattern made by looking for wave patterns generated from crowd psychology.

Crowd psychology? Who is the crowd? It's clearly us, none other than us! So we are the creators of the Elliott wave principle, no one else. Therefore, the application of the Elliott wave is completely in line with the natural human psychology.

Have you ever wondered?

- Why is the market going up so well, suddenly turning around, then falling, falling again, falling forever?

- Why is it that there are times when the market drops a little, but there are times when the market falls so suddenly that people are shocked and families are shocked?

- Why do I see TT surpassing resistance well, volume is big, candle is beautiful, I swing in 1 shot and the next day TT turns down immediately and drops deeply, causing goods to be sold immediately

- Why TT fell like crazy, I was too afraid to cut my loss, just finished cutting, TT turned to increase like there was never a breakup?

- Why is it that when the news is good, TT sometimes follows the news to increase the price, but sometimes it decreases?


The overall look seems similar, it must be a coincidence, so let's take a look at the smaller timeframe

What is happening? These things repeat, although the shape may not be correct, may be different, but it seems to be the same style.

Well, explain it like this:

Mr. Market, like all of us, has his own habits that he repeats unconsciously. EWP is a book, recording those habits of Mr. Market.

Memorizing Mr. Market's habits helps us somewhat predict his next actions, thereby plotting a shortcut to take the lead and ask for money from Mr. Market.

Of course, we'll ask him for money as soon as he's done with a good mood habit, which allows us to increase our chances of getting money from him - Because he's in a good mood, and we know that.

At the same time, we understand, even though Mr. President's mood is good, it does not mean that he will always give us money. But anyway, it will be easier to apply when Mr. TT is angry.

The question is:

Although Mr. TT's habit is repeated over and over, the same pattern, the same pattern, but each time it is different, no time is the same, so how can it be applied?

Well, EWP only records Mr. TT's habits, we only know after 1 action A, it will be action B, EWP doesn't tell us when action A will end, so the above question.. .basically unanswered.

Instead of guessing when action A will end, we should focus on observing the signs that action B has begun, that is the truth.

Mr.Elliott helped us to record all of Mr. TT's habits, our task is to memorize it and apply it wisely.