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# Elliott Wave Analysis Quiz

Created by
@ModernSerpent

### What type of wave is characterized by a strong move in the direction of the main trend, with five waves that subdivide into five waves of lesser degree?

• Motive Wave
• Corrective Wave
• Impulse Wave (correct)
• Extension Wave
• ### What is the primary purpose of labeling in Elliott Wave analysis?

• To determine the degree of the wave (correct)
• To identify corrective waves
• To create a Fibonacci sequence
• To identify motive waves
• ### What is a characteristic of a zig-zag corrective wave?

• It has five waves that subdivide into three waves of lesser degree
• It has three waves that subdivide into five waves of lesser degree
• It has three waves that subdivide into three waves of lesser degree (correct)
• It has five waves that subdivide into five waves of lesser degree
• ### What is the Fibonacci ratio of the first retracement in an impulse wave?

<p>0.382</p> Signup and view all the answers

### What is the term for a corrective wave that combines two or three simple corrective waves?

<p>Combination</p> Signup and view all the answers

### What is the term for a motive wave that extends beyond the termination point of the preceding wave?

<p>Extension</p> Signup and view all the answers

### What is the typical net retracement percentage for a Zig-zag corrective wave?

<p>50-79</p> Signup and view all the answers

### What is the purpose of using Fibonacci ratios in Elliott Wave analysis?

<p>To predict retracement levels</p> Signup and view all the answers

### What type of wave is characterized by a net retracement percentage of 10-40?

<p>Running Triangle</p> Signup and view all the answers

### What is the term for a corrective wave that has three waves, with the second wave being a zig-zag?

<p>Triple Three</p> Signup and view all the answers

### What is the primary difference between a Zig-zag and a Triangle corrective wave?

<p>Wave structure</p> Signup and view all the answers

### What is the characteristic of a triangle corrective wave?

<p>It has five waves that are all of approximately equal length</p> Signup and view all the answers

### What is the term for a corrective wave that has three waves, with the second wave being a flat?

<p>Double Three</p> Signup and view all the answers

### What is the term for the combination of two or more corrective waves?

<p>Combination</p> Signup and view all the answers

### What is the purpose of using Dividers in Elliott Wave analysis?

<p>To divide the price action into smaller segments</p> Signup and view all the answers

### What is the primary focus of Behavioral Elliott Wave analysis?

<p>Understanding market psychology</p> Signup and view all the answers

### What is the term for the complete Elliott Wave pattern?

<p>Grand Supercycle</p> Signup and view all the answers

### What is the primary characteristic of an Impulse Wave?

<p>Five-wave structure</p> Signup and view all the answers

### What is the term for a corrective wave that moves in the opposite direction of the main trend?

<p>Counter-trend</p> Signup and view all the answers

### What is the primary goal of Trading Elliott Wave?

<p>Predicting price movements</p> Signup and view all the answers

### What is the typical net retracement percentage for a Triangle corrective wave?

<p>38-50</p> Signup and view all the answers

### What is the term for a corrective wave that combines two or three simple corrective waves?

<p>Combination</p> Signup and view all the answers

### What is the characteristic of a Triangle corrective wave?

<p>A net retracement percentage of 38-50</p> Signup and view all the answers

### What is the primary focus of Behavioral Elliott Wave analysis?

<p>Understanding the psychology of market participants</p> Signup and view all the answers

### What is the characteristic of a Running Triangle corrective wave?

<p>A net retracement percentage of 10-40</p> Signup and view all the answers

### What is the term for a motive wave that extends beyond the termination point of the preceding wave?

<p>Extension</p> Signup and view all the answers

### What is the primary purpose of using Dividers in Elliott Wave analysis?

<p>To highlight key levels of support and resistance</p> Signup and view all the answers

### What is the term for a corrective wave that has three waves, with the second wave being a flat?

<p>Complex</p> Signup and view all the answers

### What is the primary goal of Trading Elliott Wave?

<p>To predict the direction of future price movements</p> Signup and view all the answers

### What type of wave is characterized by a strong move in the direction of the main trend, with five waves that subdivide into three waves of lesser degree?

<p>Impulse wave</p> Signup and view all the answers

### What is the purpose of labeling in Elliott Wave analysis, besides identifying the degree of the wave?

<p>To identify the motive or corrective nature of the wave</p> Signup and view all the answers

### What is the characteristic of a zig-zag corrective wave, besides having three waves?

<p>The second wave is a zig-zag</p> Signup and view all the answers

### What is the Fibonacci ratio of the third retracement in an impulse wave?

<p>0.236</p> Signup and view all the answers

### What is the term for a corrective wave that combines two or more corrective waves?

<p>Complex correction</p> Signup and view all the answers

### What is the term for a motive wave that extends beyond the termination point of the preceding wave?

<p>Extension</p> Signup and view all the answers

### What is the purpose of using Fibonacci ratios in Elliott Wave analysis, besides identifying retracement levels?

<p>To calculate the magnitude of the wave</p> Signup and view all the answers

### What is the typical net retracement percentage for a Flat corrective wave?

<p>40-60%</p> Signup and view all the answers

### What is the term for a corrective wave that has three waves, with the second wave being a flat?

<p>Expanded flat</p> Signup and view all the answers

### What is the primary characteristic of a Triangle corrective wave?

<p>It has three waves, with the second wave being a zig-zag</p> Signup and view all the answers

## Study Notes

### Elliott Wave Analysis

• Elliott Wave Analysis is a method of technical analysis that identifies patterns in price movements.

### Labeling

• Labeling is an essential part of Elliott Wave Analysis, where waves are labeled as either motive or corrective.

### Motive Waves

• Motive Waves are impulsive waves that move in the direction of the main trend.
• There are three types of motive waves: impulse, extension, and truncation.

### Extensions

• Extensions occur when the third wave is the longest wave in the motive wave pattern.
• Extensions can be normal, running, or overlapping.

### Truncation

• Truncation occurs when the fifth wave is shorter than the third wave in the motive wave pattern.

### Corrective Waves

• Corrective Waves are countertrend waves that move against the main trend.
• There are four types of corrective waves: zig-zag, flat, triangle, and combination.

### Zig-Zag

• A Zig-Zag is a corrective wave that has three legs, with each leg moving in the opposite direction.

### Flat

• A Flat is a corrective wave that has three legs, with each leg moving in the same direction.

### Triangles

• A Triangle is a corrective wave that has five legs, with each leg moving in an alternating direction.

### Double and Triple Zig-Zag

• A Double or Triple Zig-Zag is a corrective wave that has multiple zig-zag patterns.

### Combination (Double Three, Triple Three)

• A Combination is a corrective wave that combines two or more corrective wave patterns.

### Fibonacci

• Fibonacci is a mathematical ratio used in Elliott Wave Analysis to identify retracement and extension levels.
• The Fibonacci ratio is approximately 1.618.

### Fibonacci Ratios

• Fibonacci ratios are used to calculate retracement levels, with common ratios including 0.618, 0.382, 0.236, and 0.146.

### Retracements – Impulse Waves

• Impulse Waves often retrace to the 23.6% or 38.2% Fibonacci level.

### Retracements – Corrective Waves

• Corrective Waves have specific retracement levels, including 50-79% for Zig-Zag, 38-50% for Triangle, and 38-79% for Flat.

### Multiples – Impulse Waves

• Impulse Waves can extend to multiples of the Fibonacci ratio, such as 1.618 or 2.618.

### Multiples – Corrective Waves

• Corrective Waves can also extend to multiples of the Fibonacci ratio.

### Dividers

• Dividers are used to separate and identify different wave patterns.

• Trading with Elliott Wave Analysis requires identifying the current wave pattern and anticipating the next wave.

### Behavioral

• Behavioral aspects of Elliott Wave Analysis include understanding market psychology and sentiment.

### Elliott Wave Analysis

• Elliott Wave Analysis is a method of technical analysis that identifies patterns in price movements.

### Labeling

• Labeling is an essential part of Elliott Wave Analysis, where waves are labeled as either motive or corrective.

### Motive Waves

• Motive Waves are impulsive waves that move in the direction of the main trend.
• There are three types of motive waves: impulse, extension, and truncation.

### Extensions

• Extensions occur when the third wave is the longest wave in the motive wave pattern.
• Extensions can be normal, running, or overlapping.

### Truncation

• Truncation occurs when the fifth wave is shorter than the third wave in the motive wave pattern.

### Corrective Waves

• Corrective Waves are countertrend waves that move against the main trend.
• There are four types of corrective waves: zig-zag, flat, triangle, and combination.

### Zig-Zag

• A Zig-Zag is a corrective wave that has three legs, with each leg moving in the opposite direction.

### Flat

• A Flat is a corrective wave that has three legs, with each leg moving in the same direction.

### Triangles

• A Triangle is a corrective wave that has five legs, with each leg moving in an alternating direction.

### Double and Triple Zig-Zag

• A Double or Triple Zig-Zag is a corrective wave that has multiple zig-zag patterns.

### Combination (Double Three, Triple Three)

• A Combination is a corrective wave that combines two or more corrective wave patterns.

### Fibonacci

• Fibonacci is a mathematical ratio used in Elliott Wave Analysis to identify retracement and extension levels.
• The Fibonacci ratio is approximately 1.618.

### Fibonacci Ratios

• Fibonacci ratios are used to calculate retracement levels, with common ratios including 0.618, 0.382, 0.236, and 0.146.

### Retracements – Impulse Waves

• Impulse Waves often retrace to the 23.6% or 38.2% Fibonacci level.

### Retracements – Corrective Waves

• Corrective Waves have specific retracement levels, including 50-79% for Zig-Zag, 38-50% for Triangle, and 38-79% for Flat.

### Multiples – Impulse Waves

• Impulse Waves can extend to multiples of the Fibonacci ratio, such as 1.618 or 2.618.

### Multiples – Corrective Waves

• Corrective Waves can also extend to multiples of the Fibonacci ratio.

### Dividers

• Dividers are used to separate and identify different wave patterns.

• Trading with Elliott Wave Analysis requires identifying the current wave pattern and anticipating the next wave.

### Behavioral

• Behavioral aspects of Elliott Wave Analysis include understanding market psychology and sentiment.

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## Description

Test your knowledge of Elliott Wave Analysis, a method of technical analysis used to identify patterns in financial markets. This quiz covers the basics of labeling, motive waves, and more.

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