Waves

As we have learned earlier, The Elliott Wave Theory is completely based on the different types of wave formation on the price chart. Broadly these waves can be Mono waves or Poly waves. 

Mono Waves: Mono wave is the single direction movement wave. Mono waves are building blocks of all wave patterns. It only provides a limited perspective of the market. A greater understanding of market possibilities can be derived by grouping mono waves into poly waves.

Poly waves: Poly waves are a combination of mono waves taken together.

Waves combine to form patterns: 

1. Impulse Pattern
2. Corrective Pattern 

Patterns

1. 5 mono waves together form an impulse pattern 

2. 3 Mono waves together form a corrective pattern

We will learn more about these patterns in our upcoming units.