Technical Analysis & Chart Patterns
2 terms
Elliott Wave Theory
Technical Analysis & Chart Patterns
qualitative
A framework proposing that price moves in repeating sequences of five waves in the direction of the trend and three against it.
Structure: impulse waves 1-2-3-4-5 in the trend direction, followed by corrective waves A-B-C, with each wave subdividing into the same structure
Evening Star
Technical Analysis & Chart Patterns
qualitative
A three-candle formation of a large rising candle, a small-bodied candle, then a large falling candle closing well into the first body.
Test: candle 1 rises strongly; candle 2 has a small body above it; candle 3 falls and closes below the midpoint of candle 1's body